Below are several financial statement items for fiscal year 2013 for two grocery chains, Whole Foods Market, an upscale organic grocer and The Kroger Co, a mainstream grocer. ($ millions)

A. Calculate each company's return on assets (ROA and return on equity (ROE). Comment on any differences you observe.

b. Disaggegate the ROA for each company into profit margin (PM) and asset turnover (AT). Explain why Whole Foods has a higher ROA, is it because of PM or AT or both?

	Whole Foods	Kroger
Net Income	$551	$1,508
Sales	12,917	96,751
Average assets	5,416	24,064
Average stockholders' equity	3,840	4,090