Dollarama Inc. is Canada€™s largest operator of dollar stores, with more than 800 stores and operations across the country. The company€™s headquarters, distribution centre, and warehouses are located in Montreal, Quebec. Exhibit 4-19A presents the company€™s consolidated statement of net earnings and comprehensive income for the years ended February 2, 2014, and February 3, 2013. Exhibit 4-19B is an extract from the notes to the company€™s financial statements presenting expenses by nature.

Required:
a. Calculate Dollarama€™s gross profit percentage for 2014 and 2013. Has it improved? What does this figure tell us about each $1-priced item on Dollarama€™s shelves?
b. Dollarama presents its expenses by function and then discloses depreciation, employee benefits, and financing costs in a note to its financial statements. Comment on why this additional expense information is useful or relevant to users of the company€™s financial statements.
c. Identify other expenses not currently disclosed by nature that might be relevant to users of the company€™s financial statements.

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DOLLARAMA INC. S 2014 CONSOLIDATED STATEMENT OF NET EARNINGS AND COMPREHENSIVE INCOME EHIBIT 419A Dollarama Inc. Consolidated Statement of Net Earnings and Comprehensive Income for the years ended (Expressed in thousands of Canadian dollars, except share and per share amounts) 52-weeks February 2, 2014 53-weeks February 3, 2013 Note 2,064,676 1,299,092 765,584 363,182 47,898 354,504 11,673 342,831 92,737 250,094 Sales Cost of sales Gross profit 1,858,818 1,163,979 694,839 General, administrative and store operating expenses Depreciation and amortization Operating income 339,662 39,284 315,893 10,839 305,054 84,069 220,985 18 Net financing costs Earnings before income taxes Provision for income taxes Net earnings for the year Other comprehensive income ltems to be reclassified subsequently to net earnings Unrealized gain on derivative financial instruments, net of 18 14 reclassification adjustment Income taxes relating to component of other 14,249 1,093 comprehensive income Total other comprehensive income, net of income taxes Total comprehensive income for the year (3,808) 10,441 260,535 (308) 785 221,770 Earnings per share Basic net earnings per common share 17 $3.48 $3.00 The accompanying notes are an integral part of these consolidated financial statements E HIBT 4-19B EXCERPT FROM DOLLARAMA INC.'S 2013 ANNUAL REPORT 18 Expenses by nature included in the consolidated statement of net earnings 52-weeks February 2, 2014 53-weeks February 3, 2013 Depreciation and amortization: Depreciation of property and equipment (Note 7) Amortization of intangible assets (Note 8) Amortization of unfavourable lease rights (Note 8) Total depreciation and amortization 37,443 3,121 (1,280) 39,284 44,503 3,395 47,898 Employee benefits: Remuneration for services rendered Share options granted to directors and employees (Note 13) Defined contribution plan Total employee benefit expense 262,015 4,053 1,591 267,659 249,380 1,558 1.491 252,429 Net financing costs: interest expense and banking fees Amortization of debt issue costs 11,081 592 11,673 9,706 1,133 10,839 Total net financing costs