CASE 8.4 CERTIFIED ORGANIC Foods Market, In cluded th ts 2010 report WHOLE FOODS MARKET, INC Consolidated Balance Sheets Septemb 26, 2010 d September 27, 2009 Assets 2010 2009 Current Assets Cash and cash eq 131,996 430,130 Short-ter 329,738 estments Restricted cash 86,802 71,023 Accounts receivable 33,346 04,731 tinued CASE 8-4 cONTINUED 2010 2009 Merchand. 323,487 310,602 Prepaid expen d oth 54,686 37 Deferred income tax 01,464 87,757 Total current assets 61,519 055,380 Property and equipment, net ulated 886,130 897,853 tizati lable-fo Long-term 96,146 tments Goodw 665,224 658,254 Intangible assets, net of accumulated amortization 69,064 73,035 Deferred income tax 99,156 91,000 Other 9,30 7,866 $3,986,540 $3,78 Tota 88 Liabilities and Shareholders Equity Current Liab Current installments of long-term debt and capital bligati 410 389 counts payable 213,212 89,597 Accrued payroll, bonus and other benefits due team 244,427 207,983 Dividends payab 8,217 Other current liabilities 289,823 277,838 Total current liabilities 747,872 684,024 Long-term debt and capita bligat rent instal 508,288 738,848 Deferred lea 294,291 250,326 Other long-term liabilities 62,83 69262 Total liab 613,282 742,460 edeemable preferred stock, $0.10 p Series A 425 sha uthorized nd 425 sha d outstanding at 2010 and 2009. pectively 413,052 Shareholders' equity stock, no p ue, 300,000 sh horized; 172,033 and 140,542 shar ued and tstanding 2010 and 2009 spectively 773,897 ,283,028 ulated other preh 791 3,367) Retained earning 598,570 358 Total sharehold 2,373,258 627,876 equity Commitments and contingencies Total liab and shareholders' equity $3,986,540 $3,783,388 Property and equip include construction in progress and equipment n 2010 20,845 2009 300 WHOLE FOODS MARKET INC CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share amount ded September 26, 2010, Sept 27, 2009 d Sept ber 28, 2008 2010 2009 2008 $9,005,794 $8,031,620 $7,953,912 Cost of goods ld and 5,870,393 5277.310 5,247,207 pancy costs profi 3,135,40 2,754,310 2,706,705 Direct store expenses 2,375,716 2,145,809 2,107,940 General and administrative expenses 272,449 243,749 270,428 Pre-opening exp 38,044 49,218 55,554 Relocation, store closure and lease termination costs 217 85 36,545 Operating income 437,975 284,349 236,238 Intel 33,048 36,856 36,416 2010 2009 2008 ent and oth 6,854 3,449 6,697 Income before income taxes 78 250,942. 206,519 Provision for income taxes 65,948 04,138 91,995 Net 245,833 46,804 4,524 Preferred stock dividends 5,478 28,050 able to common shareholders 240,355 8,754 4,524 Basic earnings per share 0.85 0.82 Weighted ge sh tstanding 66,244 40,414 39,886 Diluted earnings pe sha 43 0.85 0.82 Weighted ge sh tstanding, diluted b 71,710 40,414 40,0 Dividends d d p 0.60 Req Compute the following for 2010 and 2009 1. Net profi 2. Total asset turnover (use year-end assets) 3. Return on assets (use year-end assets) 4. Operating income margin d assets 5. Retu perating 6. Sales to fixed assets (use year-end fixed assets 7. Return on investment (use year-end balance sheet accounts) tal equity d equity. 8. Retu profi 9. Gr b. Comment on the trend in (a)