C. and

All of question ten and eleven

SPROUTS FARMERS MARKET, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (IN THOUSANDS, EXCEPT SHARE AND PER SHARE AMOUNTS) December 29, 2019 December 30, 2018 $ $ 85,314 15,713 275,979 10.833 387,839 741,508 1,028,436 185,395 368,078 11,727 2,722,983 1,588 40,564 264,366 27,323 333,841 766,429 194,803 368,078 12,463 1,675,614 $ 261,326 48,579 253,969 48,603 7,428 106,153 754 416,812 ASSETS Current assets: Cash and cash equivalents Accounts receivable, net Inventories Prepaid expenses and other current assets Total current assets Property and equipment, net of accumulated depreciation Operating lease assets, net Intangible assets, net of accumulated amortization Goodwill Other assets Total assets LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable and accrued liabilities Accrued salaries and benefits Current portion of capital and financing lease obligations Current portion of operating lease liabilities Current portion of finance lease liabilities Total current liabilities Long-term capital and financing lease obligations Long-term operating lease liabilities Long-term debt and finance lease liabilities Other long-term liabilities Deferred income tax liability Total liabilities Commitments and contingencies (Note 19) Stockholders' equity Undesignated preferred stock $0.001 par value: 10,000,000 shares authorized, no shares issued and outstanding Common stock, $0.001 par value: 200,000,000 shares authorized, 117,543,668 shares issued and outstanding, December 29, 2019; 124.975,691 shares issued and outstanding, December 30, 2018 Additional paid-in capital Accumulated other comprehensive income (loss) Accumulated deficit Total stockholders' equity Total liabilities and stockholders' equity 310,000 119,642 1,078,927 549,419 41,517 54,356 2,141,031 453,000 153,377 50,399 1,086,418 117 670,966 (4,682) (84,449) 581,952 2,722,983 124 657,140 1.134 (69.202) 589,196 1,675,614 $ SPROUTS FARMERS MARKET, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) December 29 2019 $ 5,634,835 3.740.017 1,894,818 1,549,707 120.491 7.260 217,360 21,192 Net sales Cost of sales Gross profit Selling, general and administrative expenses Depreciation and amortization (exclusive of depreciation included in cost of sales) Store closure and other costs Income from operations Interest expense, net Other income Income before income taxes Income tax provision Net income Net income per share: Basic Diluted Weighted average shares outstanding: Basic Diluted Year Ended December 30, 2018 $ 5,207,336 3.459.861 1.747,475 1.404,443 108,045 12,076 222,911 27,435 320 195,796 37 260 $ 158,536 December 31. 2017 $ 4,664,612 3.097 582 1.567.030 1.245,640 94.194 1.126 226,070 21.177 625 205,518 47,078 $ 158,440 196,168 46,539 149,629 1.23 1.22 $ $ 1.25 1.25 $ $ 1.17 1.15 $ $ 119,368 119,742 128,827 129,776 135,169 137,884 SPROUTS FARMERS MARKET, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (IN THOUSANDS, EXCEPT SHARE AMOUNTS) Accumulated Comprehensis) Income Other Accumulated for Retained Solders Equity Additional Paid in Capital Common Stock Shares 672.000 158.440 140,002,242 $ 140 $ 75.500 5 158.440 597 2005 (164) (784) 9 300 9.298 2,144,669 (203.02) 14221 (203.362) (9,696,819) (10) 14221 (784) 5 650.694 15853 $ 30.550 158.535 132 620.788 132.450,092 1.918 1.918 21 843 3 21,840 3,227,693 (258.307) 14 512 (256,2953 (11) Balances at January 1, 2017 Net Income Other comprehensive Income (loss) Issuance of shares under stock plans Repurchase and retirement of common stock Share-based compensation Balances at December 31, 2017 Net income Other comprehensive Income (loss) Issuance of shares understock plans Repurchase and retirement of common stock Share-based compensation Balances at December 30, 2018 Net Income Other comprehensive income (loss) Issuance of shares under stock plans Repurchase and retirement of common stock Share-based compensation Impact of adoption of ASC 842 related to leases Balances at December 29, 2019 (11,096,595) 14 512 1,134 $ 580.196 140,629 124 $ (69.202) $ 149,629 657,140 124,581,190$ 1 - - (5.815) (5,816) 4,878 - 4,877 (176,310) 8,949 822,586 (176,302) (8) (7,950,858) 8,949 11.426 11,426 581,952 (4.682) S $ (84,449) S 117 S 670,966 117,452,918 SPROUTS FARMERS MARKET, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (IN THOUSANDS) Year Ended December 30, 2018 158,536 December 31, 2017 $ 158,440 December 29, 2019 149,629 Net income (784) (784 1,918 1,918 (5,816) (5,816) Other comprehensive income (loss), net of tax Unrealized gain (losses) on cash flow hedging activities, net of income tax of ($2,012). $663, and ($271) Total other comprehensive income (loss) $ 157,656 $ 160,454 143,813 Comprehensive incomo Organiza SPROUTS FARMERS MARKET, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (IN THOUSANDS) Year Ended December 30, 2018 December 31, 2017 December 29, 2019 $ 158.440 $ 158,536 149 529 96 987 110,749 122,804 81 842 4,113 8.949 (216) 4,136 4,115 14,512 23.333 1.482 14.221 7.803 2.086 (4920) (25.079) (2.733) 36,062 (11,612) 19,209 (1275) 28,699 295 (88,002) 578 385 210 (7.655) (34 824) (2.908) (5,088) 4366 3.039 39.244 12.764 24,731 294,379 10.868 309,567 Cash flows from operating activities Net income Adjustments to reconcile net income to net cash provided by operating activities Depreciation and amortization expense Operating lease asset amortization Store closure and other costs Share-based compensation Deferred income taxes Other non-cash items Changes in operating assets and liabilities: Accounts receivable Inventories Prepaid expenses and other current assets Other assets Accounts payable and other accrued abilities Accrued salaries and benefits Operating fease labilis Other long-term liabilities Cash flows from operating activities Cash flows from investing activities Purchases of property and equipment Proceeds from sale of property and equipment Cash flows used in investing activities Cash flows from financing activities Proceeds from revolving credit facilities Payments on revolving credit faciles Payments on capital and financing lease obligations Payments on finance lease bises Payments of deferred financing costs Cash from landlord related to capital and financing lease obligations Repurchase of common stock Proceeds from exercise of stock options Other Cash flows used in financing activities Increase / (Decrease) in cash, cash equivalents, and restricted cash Cash, cash equivalents, and restricted cash at beginning of the period Cash, cash equivalents, and restricted cash at the end of the period (183,232) (177083) (198,624) 30 (198.594 (183.232 (177,082 265,405 (180,405) 233,000 (128,000) (4.517) 153.000 (60,000) (4,192 (690) 1,325 (203,392) 9,300 (176,310) 4,878 (319) (87.441) 84,537 2.248 86,785 (2.131) 3,643 (258 307 21,843 (59) (134,528) (17.231) 19 479 2.248 (103,959 7,014 12,465 19,479 $ $ Supplemental disclosure of cash flow information Cash paid for interest Cash paid for income taxes 20.293 44,637 27 0B6 15,527 20,759 33,475 18,515 $ Supplemental disclosure of non-cash investing and financing activities Property and equipment in accounts payable Property acquired through capital and financing lease obligations $ 12.001 9,081 17,869 23 882 SPROUTS FARMERS MARKET, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (IN THOUSANDS, EXCEPT SHARE AMOUNTS) Accumulated Other Comprehensive Income Les Accumulated Daten Retained Additional Paid in Capital To Stockholders tam Common Stock Shares 672.000 158 440 140,002,242 $ 140 $ 75.500 5 158.440 597 209 (7134) (784) 9.300 2 9.298 2.144,669 lui (2001,392) 14 221 (203.382) (9,696,819) (10) 14221 (714) 5 650.694 158.535 132 $ 30.550 158,536 620.788 132.450,092 S 1.918 1.918 21 843 1 3 21,840 3,227,693 (258.307) 14 512 (258,290) Balances at January 1, 2017 Net income Other comprehensive income (loss) Issuance of shares under stock plans Repurchase and retirement of common stock Share-based compensation Balances at December 31, 2017 Net Income Other comprehensive Income (loss) Issuance of shares under stock plans Repurchase and retirement of common stock Share-based compensation Balances at December 30, 2018 Net Income Other comprehensive income (loss) Issuance of shares understock plans Repurchase and retirement of common stock Share-based compensation Impact of adoption of ASC 842 related to leases Balances at December 29, 2019 (11) (11.096,595) 14,512 1,134 589,195 140.629 657,140 (69.202) $ 149,629 124 5 124,581,190 $ (5.816) (5.816) 4,878 4.877 822 586 (178.310) 8,949 (176,302) (8) (7,950,858) 8,949 11,426 11,426 581,952 (4.682) $ (84,449) S $ 117 670,966 $ $ 117,452,918 b. Rate of return on Total Assets c. Return on Common Stockholders' Equity (ROE) 10. (6 points) Calculate the following solvency ratios for the current year and give a one sentence description of each result. a. Debt to assets ratio b. Debt to Equity ratio - (total liabilities/total equity) b. Times Interest Earned Ratio 11. (2 points) Calculate the free cash flow of the company for the most current year (Hint: use the formula given in the book on page 17-17)