The required tasks are detailed below:

(1) Prepare vertical common-size income statements and balance sheets for both companies.

Note: Use Total Sales and Total Assets as the denominators for income statement

and balance sheet, respectively. Compute for 2019, 2018, and 2017.

(2) Prepare horizontal analysis on income statements and balance sheets for both companies

for 2019 and 2018.

(3) Prepare ratio analyses (for 2019, 2018, and 2017) for both companies. You should

include the following ratios in your computations:

Profitability ratios

• Gross Profit margin
• Profit margin
• Return on assets
• Return on equity

Productivity

• Inventory Turnover
• Accounts Receivable Turnover
• PPE Turnover
• Asset Turnover

Solvency

• Debt-to-equity
• Times interest earned
• Return on Financial leverage

Liquidity

• Current Ratio
• Quick Ratio
• Operating cash flow to current liabilities
• Working capital

(3) Comment on the analytical results of the two companies based on your work in excel.

In addition to contrasting the ratios between the companies, you should interpret the

numbers and make suggestions as to why the ratio of one company might be higher/lower

than the other.

Project (4) Write a cxmclusive summary on the firms you have studied. IBased upon your conclusions, recommend the better performing firm for potential investment. Your conclusions should be based upon, and specifically reference, the analyses prepared in this report. The required tasks are detailed below: (1) Prepare vertical common-size income statements and balance sheets for both companies Note: Use "Total Sales" and "Total Assets" as the denominators for income statement and balance sheet, respectively. Compute for 2019, 2018, and 2017. Report Format Requirements: 1. Repit Inwy wire: (2) Prepare horizontal analysis an income statements and balance sheets for both exanpanies for 2019 and 2018, (3) Prepare ratio analyses (for 2019, 2018, and 2017) for both companies. You should include the following ratios itt your computations: 1. Cover page. List the title of the project, your name, and semesteryear. 2. Main boxly. Use the following sequence for report content: a. Introduction to the two companies and to the purpose of the report b. Avalytical section. This should include all your numerical analyses. This is where you will discuss the results of commuts on, and conclusions about the Common Size, horizontal, and the ratio analyses for both companies. When writing this section, please explain each analysis (purpose'importance), and then discuss the results. c. Comparisons of companies and all other analysis (observations and/or interpretations). (You may combine b and if you wish, as long as both are well covered.) d. Conclusions and recommendation for investment. Profitability ratios c Gross Profit margin c Profit margin Relum in asses Return on equity Productivity Inventory Turner Accounts Receivable Tumover o PPE Tumover o Asset Turnover Solvency o Debt-to-equity Times interest earned o Retum on Financial leverage Liquidity o Current Ratio C Quick Ratio Operating cash flow to current liabilities o Working capital 3. References. List all major reference sources. 4. Appendices. Include tables and graphs of your numerical analyses. For reference convenience, assign a title to each paralelem, such as Table 1, Exhibit 1, el. B. Typesetting requirements: 1. Use size 12 font. Times New Roman is preferred. 2. Double space between linca. 3. Number pages 4. One inch ou all sides. C Miscellaneous The total report should be approximately 20 pages. (3) Comment on the analytical results of the two companies based on your work in excel In addition to contrasting the ratios between the companies, you sbould interpret the numbers and make suggestions as to why the ratio of onc company might be higher lower than the other Notes Plagiarism will not be tolerated. Evidence of plagiarisin will result in a grade of "F" to the course and may he subject to appropriate disciplines, Note: General discussions of the ratios are given in cur textbook, which will help you structure your comments. A portion of your grade will be assessed based on the overall report quality, clarity, format, and cohesiveness. 2 3 D G H 6,533,000 11,117,000 10 8 Inventory 21.071,000 21,016,000 tel:24%2025%2026%2027%2028%2029%2030 E F 1 NOTE: 2016 BALANCE SHEET INFORMATION SHOULD BE USED ONLY FOR RATIOS 2 As Reported Annual Balance Sheet 3 Report Date 2019 2018 2017 2016 4 Scale Thousands Thousands Thousands Thousands 5 Cash & temporary cash investments 399,000 429,000 347,000 322,000 6 Store deposits in-transit 1,179,000 1,181,000 1,161,000 910,000 7 Receivables 1,706,000 1,589,000 1,637,000 1,649,000 7,084,000 6,846,000 6,561,000 9 Assets held for sale 0 166,000 604.000 0.00 10 Prepaid & other current assets 522,000 592,000 835,000 898,000 11 Total current assets 10,890,000 10,803,000 10,340,000 12 Property, plant & equipment, net 21,871,000 21,635,000 13 Operating lease assets 6,814,000 0 0 0 14 Intangibles, net 1,066,000 1,258,000 1,100,000 1,153,000 15 Goodwill 3,076,000 3,087,000 2,925,000 3,031,000 16 Other assets 1,539,000 1,335,000 984,000 965,000 17 Total assets 45,256,000 38,118,000 37,197,000 36,505,000 18 19 Liabilities 20 Current portion of long-term debt including obligatio 1,965,000 0 0 0 21 Current portion of long-term debt including obligatio 0 3,157,000 3,560,000 2,252,000 22 Current portion of operating lease liabilities 597,000 0 0 0 23 Trade accounts payable 6,349,000 6,059,000 5,858,000 5,818,000 24 Accrued salaries & wages 1,168,000 1,227,000 1,099,000 1,234,000 25 Deferred income taxes 0 0 0 251,000 26 Liabilities held for sale 0 51,000 259,000 0 27 Other current liabilities 4,164,000 3,780,000 3,421,000 3,305,000 28 Total current liabilities 14,243,000 14,274,000 14,197,000 12,860,000 29 Noncurrent operating lease liabilities 6,505,000 0 0 0 30 Long-term debt including obligations under finance 12,111,000 0 0 0 31 Long-term debt including obligations under capital 0 12,072,000 12,029,000 11.825.000 32 Deferred income taxes 1,466,000 1,562,000 1,568,000 1,927.000 33 Pension & postretirement benefit obligations 494,000 792,000 1,524,000 34 Other long-term liabilities 1,750,000 1,881,000 1,706,000 1,659,000 35 Total liabilities 36,683,000 30,283,000 30,292,000 29,795,000 36 37 Common shares 1,918,000 1.918,000 1,918,000 1.918,000 38 Additional paid-in capital 3,337,000 3,245,000 3,161,000 3,070,000 39 Accumulated other comprehensive income (loss) (346,000) (471,000) (715,000) 40 Retained earnings (accumulated deficit) 19,681,000 17,007,000 15,543,000 41 Common shares in treasury, at cost 16,991,000 16,612,000 14,684,000 13,118,000 42 Noncontrolling interests (29,000) (51,000) (26,000) 12.000 43 Total equity (deficit) 8,573,000 7,835,000 6,905,000 6,710,000 44 608,000 (640,000) 20,978,000 4,164,000 3,413,000 4,272.000 45 46 . 47 Additional Information 48 Net cash flows from operating activities 4,664,000 49 50 Land 3,299,000 51 Buildings & land improvements 12,553,000 52 Equipment 15,031,000 53 Leasehold improvements 10,832,000 54 Construction-in-progress 3,166.000 55 Leased property under capital leases & financing on 966,000 56 Total property, plant & equipment 45,847,000 57 Accumulated depreciation & amortization 23,976,000 58 Property, plant & equipment, net 21,871,000 3,254,000 12,245,000 14,277,000 10,306,000 2,716,000 1,066,000 43,864,000 22,229,000 21,635,000 3,201,000 12,072,000 13,635,000 9,773,000 2,050,000 1,000,000 41,731,000 20,660,000 21,071,000 3,197,000 11,643,000 13,495,000 9,342,000 1,979,000 932,000 40,588,000 19,572.000 21,016,000 C D 8 Rent As Reported Annual Income Statement 2 Report Date 2019 3 Scale Thousands 4 Sales 122,286,000 5 Cost of sales 95,294,000 6 Gross Profit 26,992,000 7 Operating, general & administrative 21,208,000 884,000 9 Depreciation & amortization 2,649,000 10 Operating profit (loss) 2,251,000 11 Interest expense 603,000 12 Non-service component of company-sponsored pension plan costs 0 13 Mark to market gain (loss) on Ocado International Holdings Limited & Ocad 157.000 14 Gain on sale of businesses 176,000 15 Net earnings before income tax expense (benefit) 1,981,000 16 Income tax expense (benefit) 469,000 17 Net earings after income tax expense (benefit) 1,512,000 18 Net earnings (loss) attributable to noncontrolling interests 147,000 19 Net earnings (loss) attributable to The Kroger Co. 1,659,000 20 2018 Thousands 121,162,000 94,894,000 26,268,000 20,305,000 884,000 2,465,000 2,614,000 620,000 26,000 228,000 1,782,000 3,978,000 900,000 3,078,000 32,000 3,110,000 2017 Thousands 122,662,000 95,662,000 27,000,000 21,568,000 911,000 2,436,000 2,085,000 601,000 0 0 0 1,484,000 (405,000) 1,889,000 18,000 1,907,000 21 22 23 Additional Information 24 25 Weighted average shares outstanding - basic 26 Weighted average shares outstanding - diluted 27 Year end shares outstanding 799,000 805,000 788,000 810,000 818,000 798,000 895,000 904,000 870,000 G H 2016 Thousands 6,867,000 5,835,000 43,046 000 1,941,000 57,689,000 107.710,000 0 6,468,000 17,037,000 9,921,000 198.825,000 B D E F 1 NOTE: 2016 BALANCE SHEET INFORMATION SHOULD BE USED ONLY FOR RATIOS 2 As Reported Annual Balance Sheet 3 Report Date 2019 2018 2017 4 Scale Thousands Thousands Thousands 5 Assets 6 Cash & cash equivalents 9,465,000 7,722,000 6,756,000 7 Receivables, net 6,284,000 6,283,000 5,614,000 8 Inventories 44,435,000 44,269,000 43.783,000 9 Prepaid expenses & other current assets 1,622,000 3,623,000 3,511,000 10 Total current assets 61,806,000 61,897,000 59,664,000 11 Property & equipment net 105,208,000 104,317,000 107,675,000 12 Operating lease right-of-use assets 17,424,000 0 0 13 Finance lease right-of-use assets, net 4,417,000 0 14 Property under capital lease & financing obligations, net 0 7,078,000 7,143,000 15 Goodwill 31,073,000 31,181,000 18,242,000 16 Other long-term assets 16,567,000 14,822,000 11,798,000 17 Total assets 236,495,000 219,295,000 204,522,000 18 19 20 Liabilities & Equity 21 Short-term borrowings 575,000 5,225,000 5,257,000 22 Accounts payable 46,973,000 47,060,000 46,092.000 23 Accrued liabilities 22,296,000 22.159,000 22,122.000 24 Accrued income taxes 280,000 428,000 645,000 25 Long-term debt due within one year 5,362,000 1,876,000 3,738,000 26 Operating lease obligations due within one year 1.793,000 0 0 27 Finance lease obligations due within one year 511,000 0 0 28 Capital lease & financing obligations due within one year 0 729,000 667,000 29 Total current liabilities 77,790,000 77,477,000 78,521,000 30 Long-term debt 43,714,000 43,520,000 30,045,000 31 Long-term operating lease obligations 16,171,000 0 0 32 Long-term finance lease obligations 4,307,000 0 0 33 Long-term capital lease & financing obligations 0 6,683,000 6,780,000 34 Deferred income taxes & other liabilities 12,961,000 11,981,000 8,354,000 35 Total Liabilities 154,943,000 139,661,000 123,700,000 36 27 37 Common stock 284,000 288,000 295,000 38 Capital in excess of par value 3,247 000 2.965,000 2,648,000 39 Retained earnings (accumulated deficit) 83,943,000 80.785,000 85,107,000 40 Accumulated other comprehensive income (loss) (12,805,000) (11,542,000) (10,181,000) 41 Noncontrolling interest 6,883,000 7,138,000 2.953,000 42 Total equity 81,552,000 79,634,000 80,822,000 43 44 44 45 Additional Information 46 Net cash flows from operating activities 25,255,000 27,753,000 28,337,000 * 48 Land 24,619.000 24,526,000 25,298,000 49 Buildings & improvements 105,674,000 101,006,000 101,155,000 50 Fixtures & equipment 58,607,000 54,488,000 52,695,000 51 Transportation equipment 2,377,000 2,316,000 2,387,000 52 Construction in progress 3,751,000 3,474,000 3,619,000 53 Property & equipment, gross 195,028,000 185,810,000 185,154,000 54 Less: accumulated depreciation 89,820,000 81,493,000 77,479,000 55 Property & equipment, net 105,208,000 104,317,000 107,675,000 1,099.000 41,433,000 20,654,000 921,000 2,256,000 0 0 565.000 66,928,000 36,015,000 0 0 6,003,000 9,344,000 118,290,000 305,000 2,371,000 89,354,000 (14,232,000) 2.737,000 80,535,000 31,530,000 47 24,801,000 98,547,000 48.998,000 2,845,000 4,301,000 179,492.000 71,782,000 107.710,000 B D E 1 As Reported Annual Income Statement Report Date Scale 4 Net sales 5 Membership & other income 6 Total revenues 7 Cost of sales Gross Profit 9 Operating, selling, general & administrative expenses 10 Operating income (loss) 11 Interest expense on debt 12 Interest expense on finance, capital lease & financing obligations 13 Interest income 14 Gain (loss) on extinguishment of debt 15 Other gains & (losses) 16 Income (loss) before income taxes 17 Provision (benefit) for income taxes 18 Income (loss) after income taxes 19 Less consolidated net income attributable to noncontrolling interest 20 Net Income 2019 Thousands 519,926,000 4,038,000 523,964,000 394,605,000 129,359,000 108,791,000 20,568,000 2,262,000 337,000 189,000 0 1,958,000 20,116,000 4,915,000 15,201,000 (320,000) 14,881,000 2018 Thousands 510,329,000 4,076,000 514,405,000 385,301,000 129,104,000 107,147,000 21,957,000 1,975,000 371,000 217,000 0 (8,368,000) 11,460,000 4,281,000 7,179,000 (509,000) 6,670,000 2017 Thousands 495,761,000 4,582,000 500,343,000 373,396,000 126,947,000 106,510,000 20,437,000 1,978,000 352,000 152,000 (3,136,000) 0 15,123,000 4,600,000 10,523,000 (661,000) 9,862,000 21 22 23 24 Additional Information 25 26 Weighted average shares outstanding - basic 27 Weighted average shares outstanding - diluted 28 Year end shares outstanding 2,850,000 2,868,000 2,832,000 2,929,000 2,945,000 2,878,000 2,995,000 3,010,000 2,952,000 Project (4) Write a cxmclusive summary on the firms you have studied. IBased upon your conclusions, recommend the better performing firm for potential investment. Your conclusions should be based upon, and specifically reference, the analyses prepared in this report. The required tasks are detailed below: (1) Prepare vertical common-size income statements and balance sheets for both companies Note: Use "Total Sales" and "Total Assets" as the denominators for income statement and balance sheet, respectively. Compute for 2019, 2018, and 2017. Report Format Requirements: 1. Repit Inwy wire: (2) Prepare horizontal analysis an income statements and balance sheets for both exanpanies for 2019 and 2018, (3) Prepare ratio analyses (for 2019, 2018, and 2017) for both companies. You should include the following ratios itt your computations: 1. Cover page. List the title of the project, your name, and semesteryear. 2. Main boxly. Use the following sequence for report content: a. Introduction to the two companies and to the purpose of the report b. Avalytical section. This should include all your numerical analyses. This is where you will discuss the results of commuts on, and conclusions about the Common Size, horizontal, and the ratio analyses for both companies. When writing this section, please explain each analysis (purpose'importance), and then discuss the results. c. Comparisons of companies and all other analysis (observations and/or interpretations). (You may combine b and if you wish, as long as both are well covered.) d. Conclusions and recommendation for investment. Profitability ratios c Gross Profit margin c Profit margin Relum in asses Return on equity Productivity Inventory Turner Accounts Receivable Tumover o PPE Tumover o Asset Turnover Solvency o Debt-to-equity Times interest earned o Retum on Financial leverage Liquidity o Current Ratio C Quick Ratio Operating cash flow to current liabilities o Working capital 3. References. List all major reference sources. 4. Appendices. Include tables and graphs of your numerical analyses. For reference convenience, assign a title to each paralelem, such as Table 1, Exhibit 1, el. B. Typesetting requirements: 1. Use size 12 font. Times New Roman is preferred. 2. Double space between linca. 3. Number pages 4. One inch ou all sides. C Miscellaneous The total report should be approximately 20 pages. (3) Comment on the analytical results of the two companies based on your work in excel In addition to contrasting the ratios between the companies, you sbould interpret the numbers and make suggestions as to why the ratio of onc company might be higher lower than the other Notes Plagiarism will not be tolerated. Evidence of plagiarisin will result in a grade of "F" to the course and may he subject to appropriate disciplines, Note: General discussions of the ratios are given in cur textbook, which will help you structure your comments. A portion of your grade will be assessed based on the overall report quality, clarity, format, and cohesiveness. 2 3 D G H 6,533,000 11,117,000 10 8 Inventory 21.071,000 21,016,000 tel:24%2025%2026%2027%2028%2029%2030 E F 1 NOTE: 2016 BALANCE SHEET INFORMATION SHOULD BE USED ONLY FOR RATIOS 2 As Reported Annual Balance Sheet 3 Report Date 2019 2018 2017 2016 4 Scale Thousands Thousands Thousands Thousands 5 Cash & temporary cash investments 399,000 429,000 347,000 322,000 6 Store deposits in-transit 1,179,000 1,181,000 1,161,000 910,000 7 Receivables 1,706,000 1,589,000 1,637,000 1,649,000 7,084,000 6,846,000 6,561,000 9 Assets held for sale 0 166,000 604.000 0.00 10 Prepaid & other current assets 522,000 592,000 835,000 898,000 11 Total current assets 10,890,000 10,803,000 10,340,000 12 Property, plant & equipment, net 21,871,000 21,635,000 13 Operating lease assets 6,814,000 0 0 0 14 Intangibles, net 1,066,000 1,258,000 1,100,000 1,153,000 15 Goodwill 3,076,000 3,087,000 2,925,000 3,031,000 16 Other assets 1,539,000 1,335,000 984,000 965,000 17 Total assets 45,256,000 38,118,000 37,197,000 36,505,000 18 19 Liabilities 20 Current portion of long-term debt including obligatio 1,965,000 0 0 0 21 Current portion of long-term debt including obligatio 0 3,157,000 3,560,000 2,252,000 22 Current portion of operating lease liabilities 597,000 0 0 0 23 Trade accounts payable 6,349,000 6,059,000 5,858,000 5,818,000 24 Accrued salaries & wages 1,168,000 1,227,000 1,099,000 1,234,000 25 Deferred income taxes 0 0 0 251,000 26 Liabilities held for sale 0 51,000 259,000 0 27 Other current liabilities 4,164,000 3,780,000 3,421,000 3,305,000 28 Total current liabilities 14,243,000 14,274,000 14,197,000 12,860,000 29 Noncurrent operating lease liabilities 6,505,000 0 0 0 30 Long-term debt including obligations under finance 12,111,000 0 0 0 31 Long-term debt including obligations under capital 0 12,072,000 12,029,000 11.825.000 32 Deferred income taxes 1,466,000 1,562,000 1,568,000 1,927.000 33 Pension & postretirement benefit obligations 494,000 792,000 1,524,000 34 Other long-term liabilities 1,750,000 1,881,000 1,706,000 1,659,000 35 Total liabilities 36,683,000 30,283,000 30,292,000 29,795,000 36 37 Common shares 1,918,000 1.918,000 1,918,000 1.918,000 38 Additional paid-in capital 3,337,000 3,245,000 3,161,000 3,070,000 39 Accumulated other comprehensive income (loss) (346,000) (471,000) (715,000) 40 Retained earnings (accumulated deficit) 19,681,000 17,007,000 15,543,000 41 Common shares in treasury, at cost 16,991,000 16,612,000 14,684,000 13,118,000 42 Noncontrolling interests (29,000) (51,000) (26,000) 12.000 43 Total equity (deficit) 8,573,000 7,835,000 6,905,000 6,710,000 44 608,000 (640,000) 20,978,000 4,164,000 3,413,000 4,272.000 45 46 . 47 Additional Information 48 Net cash flows from operating activities 4,664,000 49 50 Land 3,299,000 51 Buildings & land improvements 12,553,000 52 Equipment 15,031,000 53 Leasehold improvements 10,832,000 54 Construction-in-progress 3,166.000 55 Leased property under capital leases & financing on 966,000 56 Total property, plant & equipment 45,847,000 57 Accumulated depreciation & amortization 23,976,000 58 Property, plant & equipment, net 21,871,000 3,254,000 12,245,000 14,277,000 10,306,000 2,716,000 1,066,000 43,864,000 22,229,000 21,635,000 3,201,000 12,072,000 13,635,000 9,773,000 2,050,000 1,000,000 41,731,000 20,660,000 21,071,000 3,197,000 11,643,000 13,495,000 9,342,000 1,979,000 932,000 40,588,000 19,572.000 21,016,000 C D 8 Rent As Reported Annual Income Statement 2 Report Date 2019 3 Scale Thousands 4 Sales 122,286,000 5 Cost of sales 95,294,000 6 Gross Profit 26,992,000 7 Operating, general & administrative 21,208,000 884,000 9 Depreciation & amortization 2,649,000 10 Operating profit (loss) 2,251,000 11 Interest expense 603,000 12 Non-service component of company-sponsored pension plan costs 0 13 Mark to market gain (loss) on Ocado International Holdings Limited & Ocad 157.000 14 Gain on sale of businesses 176,000 15 Net earnings before income tax expense (benefit) 1,981,000 16 Income tax expense (benefit) 469,000 17 Net earings after income tax expense (benefit) 1,512,000 18 Net earnings (loss) attributable to noncontrolling interests 147,000 19 Net earnings (loss) attributable to The Kroger Co. 1,659,000 20 2018 Thousands 121,162,000 94,894,000 26,268,000 20,305,000 884,000 2,465,000 2,614,000 620,000 26,000 228,000 1,782,000 3,978,000 900,000 3,078,000 32,000 3,110,000 2017 Thousands 122,662,000 95,662,000 27,000,000 21,568,000 911,000 2,436,000 2,085,000 601,000 0 0 0 1,484,000 (405,000) 1,889,000 18,000 1,907,000 21 22 23 Additional Information 24 25 Weighted average shares outstanding - basic 26 Weighted average shares outstanding - diluted 27 Year end shares outstanding 799,000 805,000 788,000 810,000 818,000 798,000 895,000 904,000 870,000 G H 2016 Thousands 6,867,000 5,835,000 43,046 000 1,941,000 57,689,000 107.710,000 0 6,468,000 17,037,000 9,921,000 198.825,000 B D E F 1 NOTE: 2016 BALANCE SHEET INFORMATION SHOULD BE USED ONLY FOR RATIOS 2 As Reported Annual Balance Sheet 3 Report Date 2019 2018 2017 4 Scale Thousands Thousands Thousands 5 Assets 6 Cash & cash equivalents 9,465,000 7,722,000 6,756,000 7 Receivables, net 6,284,000 6,283,000 5,614,000 8 Inventories 44,435,000 44,269,000 43.783,000 9 Prepaid expenses & other current assets 1,622,000 3,623,000 3,511,000 10 Total current assets 61,806,000 61,897,000 59,664,000 11 Property & equipment net 105,208,000 104,317,000 107,675,000 12 Operating lease right-of-use assets 17,424,000 0 0 13 Finance lease right-of-use assets, net 4,417,000 0 14 Property under capital lease & financing obligations, net 0 7,078,000 7,143,000 15 Goodwill 31,073,000 31,181,000 18,242,000 16 Other long-term assets 16,567,000 14,822,000 11,798,000 17 Total assets 236,495,000 219,295,000 204,522,000 18 19 20 Liabilities & Equity 21 Short-term borrowings 575,000 5,225,000 5,257,000 22 Accounts payable 46,973,000 47,060,000 46,092.000 23 Accrued liabilities 22,296,000 22.159,000 22,122.000 24 Accrued income taxes 280,000 428,000 645,000 25 Long-term debt due within one year 5,362,000 1,876,000 3,738,000 26 Operating lease obligations due within one year 1.793,000 0 0 27 Finance lease obligations due within one year 511,000 0 0 28 Capital lease & financing obligations due within one year 0 729,000 667,000 29 Total current liabilities 77,790,000 77,477,000 78,521,000 30 Long-term debt 43,714,000 43,520,000 30,045,000 31 Long-term operating lease obligations 16,171,000 0 0 32 Long-term finance lease obligations 4,307,000 0 0 33 Long-term capital lease & financing obligations 0 6,683,000 6,780,000 34 Deferred income taxes & other liabilities 12,961,000 11,981,000 8,354,000 35 Total Liabilities 154,943,000 139,661,000 123,700,000 36 27 37 Common stock 284,000 288,000 295,000 38 Capital in excess of par value 3,247 000 2.965,000 2,648,000 39 Retained earnings (accumulated deficit) 83,943,000 80.785,000 85,107,000 40 Accumulated other comprehensive income (loss) (12,805,000) (11,542,000) (10,181,000) 41 Noncontrolling interest 6,883,000 7,138,000 2.953,000 42 Total equity 81,552,000 79,634,000 80,822,000 43 44 44 45 Additional Information 46 Net cash flows from operating activities 25,255,000 27,753,000 28,337,000 * 48 Land 24,619.000 24,526,000 25,298,000 49 Buildings & improvements 105,674,000 101,006,000 101,155,000 50 Fixtures & equipment 58,607,000 54,488,000 52,695,000 51 Transportation equipment 2,377,000 2,316,000 2,387,000 52 Construction in progress 3,751,000 3,474,000 3,619,000 53 Property & equipment, gross 195,028,000 185,810,000 185,154,000 54 Less: accumulated depreciation 89,820,000 81,493,000 77,479,000 55 Property & equipment, net 105,208,000 104,317,000 107,675,000 1,099.000 41,433,000 20,654,000 921,000 2,256,000 0 0 565.000 66,928,000 36,015,000 0 0 6,003,000 9,344,000 118,290,000 305,000 2,371,000 89,354,000 (14,232,000) 2.737,000 80,535,000 31,530,000 47 24,801,000 98,547,000 48.998,000 2,845,000 4,301,000 179,492.000 71,782,000 107.710,000 B D E 1 As Reported Annual Income Statement Report Date Scale 4 Net sales 5 Membership & other income 6 Total revenues 7 Cost of sales Gross Profit 9 Operating, selling, general & administrative expenses 10 Operating income (loss) 11 Interest expense on debt 12 Interest expense on finance, capital lease & financing obligations 13 Interest income 14 Gain (loss) on extinguishment of debt 15 Other gains & (losses) 16 Income (loss) before income taxes 17 Provision (benefit) for income taxes 18 Income (loss) after income taxes 19 Less consolidated net income attributable to noncontrolling interest 20 Net Income 2019 Thousands 519,926,000 4,038,000 523,964,000 394,605,000 129,359,000 108,791,000 20,568,000 2,262,000 337,000 189,000 0 1,958,000 20,116,000 4,915,000 15,201,000 (320,000) 14,881,000 2018 Thousands 510,329,000 4,076,000 514,405,000 385,301,000 129,104,000 107,147,000 21,957,000 1,975,000 371,000 217,000 0 (8,368,000) 11,460,000 4,281,000 7,179,000 (509,000) 6,670,000 2017 Thousands 495,761,000 4,582,000 500,343,000 373,396,000 126,947,000 106,510,000 20,437,000 1,978,000 352,000 152,000 (3,136,000) 0 15,123,000 4,600,000 10,523,000 (661,000) 9,862,000 21 22 23 24 Additional Information 25 26 Weighted average shares outstanding - basic 27 Weighted average shares outstanding - diluted 28 Year end shares outstanding 2,850,000 2,868,000 2,832,000 2,929,000 2,945,000 2,878,000 2,995,000 3,010,000 2,952,000