Each group (if applicable) or individual student will use the EDGAR website to access the most recent 10-K annual report for a merchandising company of their choice. Examples include: Target, Home Depot, Walgreens, Best Buy, The Kroger Co or Walmart.

1. Income Statement Complete the partial common-size income statement for the current and prior year. Round percentages to one decimal. (3pts)

Income Statement	Current $	%	Prior $	%
Sales
Cost of sales
Gross margin
Operating expenses:
SGA expenses
Depreciation
All other (if applicable)
Total operating expenses
Operating Income
Net earnings

Comment on what you learned about the company from the common-size income statement.

THE KROGER CO. CONSOLIDATED STATEMENTS OF OPERATIONS Yeurs Ended Januury 30, 2021, February 1, 2020 and February 2, 2019 2019 (In millions, except per share amounts) Sales 2020 (52 weeks) 132,498 (52 weeks) 122,286 2018 (52 weeks) 121,852 $ $ $ Operating expenses Merchandise costs, including advertising, warehousing, and transportation, excluding items shown separately below Operating, general und auministrative 95.103 101.597 24,500 874 95.294 21.208 884 20,786 Rent 884 Depreciation and amortization 2.747 2,649 2,465 2.780 2.251 2.614 (544) (603) Operating profit Other income (expense) Interest expense Non-service component of company-sponsored pension plan costs Gain on investments Gain on sale of businesses 29 1,105 (620) ( (26) 228 1,782 157 176 Net carnings before income tax expense 3,370 1,981 3,978 Income tax expense 782 469 WO 2.588 Net eurnings including noncontrolling interests Net income (loss) attributable to noncontrolling interests 1.S12 (147) 3,078 (32 Net earnings attributable to The Kroger Co $ 2,585 $ 1,659 $ 3,110 3.31 $ Net carnings attributable to The Kroger Coper basic common share $ 2.05 $ 3.80 Averuge number of common shares used in basic calculation 773 799 810 Net earrings attributable to The Kroger Co. per diluted common share $ 3.27 $ 2.04 $ 3.76 Average number of common shares used in diluted calculation 781 BOS 818 The accompanying notes are an integral part of the consolidated financial statements