Dollar General Going Private Case Solution

Coupled with rises in administrative expenses and interest expense, the company saw a significant decline in their Net Income, which stood at a meager $ 137.9 million in 2007 compared to $ 350 million in 2006.

The company’s assets did not increase by a significant margin and showed a slight increase due to investment in fixed assets. There were no major shifts in the composition of liabilities and the same ratio of debt to equity persists over the past two years. The company borrowed extensively from their revolving credit facility, and the debt was paid off in the same year. There were no significant changes in cash flow, as well.