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Obtain Dollar General's Form 10-K for the fiscal year ending on December 31, 2017. Form 10-K can be obtained either from the SEC (Links to an external site.)'s EDGAR Filing system or the "Investor Relations" link on the company's (Links to an external site.). Read the "Growth Strategies" and the "Consolidated Statements of Cash Flows" sections of Dollar General's 10-K Form to answer the following questions:
Question 1: How many stores is Dollar General planning to open during its 2018 and 2019 fiscal years? By what percentage would these new stores increase the size of the company?
Question 2: How much cash did General Dollar spend on investing activities during its 2016, 2017, and 2018 fiscal years? Do you think the amount spent on investing activities represents the full costs that General Dollar incurred to open new stores? Explain you answer.
Question 3: Where did General Dollar get the cash used to make these investments?
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A new plant accountant suggested that the company may be able to assign support costs to products more accurately by using an activity based costing system that relies on a separate rate for each manufacturing activity that causes support costs.
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