RESEARCHING AND ANALYSIS USING THE ANNUAL 10-K Obtain Whole Foods’ 2007 annual report either through the ‘‘Investor Relations’’

portion of its website (do a web search for Whole Foods investor relations) or go to http://www.sec.gov and click ‘‘Search for company filings’’ under ‘‘Filings & Forms

(EDGAR).’’

Required:

. What are Whole Foods’ total current liabilities for 2007?

. How much of their current liabilities is the current portion of long-term liabilities?

. How much is the current portion of long-term debt (see Note 8)?

. Look at Item 3 in the 10-K (this discusses Whole Foods’ legal proceedings).

Describe the major current legal proceedings involving Whole Foods. Based on the information in item 3, do you believe that Whole Foods has recognized a contingent liability related to these current legal proceedings?

. Calculate Whole Foods’ current ratio for 2007 and 2006.

. Discuss Whole Foods’ short-term liquidity based on the values and trends of the current ratio.

. Calculate Whole Foods’ quick ratio and cash ratio for 2007 and 2006.

. Discuss the implications of these ratios when evaluating Whole Foods’ short-term liquidity.

. Calculate Whole Foods’ operating cash flows ratio.

. Discuss the implications of this ratio when evaluating Whole Foods’ short-term liquidity.

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