1. Compute the following ratios for the companies 2014 fiscal years. (Use formulas):
   1. Current ratio
   2. Average days to sell inventory. (Use average inventory.)
   3. Debt to assets ratio.
   4. Return on investment. (Use average assets and use earnings from continuing operations rather than net earnings.)
   5. Gross margin percentage.
   6. Asset turnover. (Use average assets.)
   7. Net margin. (Use earnings from continuing operations rather than net earnings.)
   8. Plant assets to long-term debt ratio.
2. Which company appears to be more profitable? Explain your answer and identify which ratio(s) from Requirement a you used to reach your conclusion.
3. Which company appears to have the higher level of financial risk? Explain your answer and identify which ratio(s) from Requirement a you used to reach your conclusion.
4. Which company appears to be charging higher prices for its goods? Explain your answer and identify which ratio(s) from Requirement a you used to reach your conclusion.
5. Which company appears to be the more efficient at using its assets? Explain your answer and identify which ratio(s) from Requirement a you used to reach your conclusion.

THE KROGER COMPANY Selected Financial Information (amounts in millions, except per share amounts) January 31, 2015 February 1, 2014 $ Total current assets Merchandise inventory Property and equipment, net of depreciation Total assets Total current liabilities Total long-term liabilities Total liabilities Total shareholders' equity Revenues Cost of goods sold Gross profit Operating income Earnings from continuing operations before income tax expense Income tax expense Net earnings Basic earnings per share 8,911 8,178 17,912 30.556 11,403 13.711 25.114 5.442 108,465 85,512 22,953 3,137 $ 8,830 7,951 16,893 29,281 10.705 13,181 23,886 5,395 98,375 78,138 20,237 2,725 2,649 902 1,747 1.75 2,282 751 1,531 1.47 $ $ WHOLE FOODS MARKET, INC. Selected Financial Information (amounts in millions except per share data) September 28, 2014 Total current assets Merchandise inventory Property and equipment, net of depreciation Total assets Total current liabilities Total long-term liabilities Total liabilities Total stockholders' equity Revenues Cost of goods sold Gross profit Operating income Earnings from continuing operations before income taxes Income tax expense Net earnings Basic earnings per share $ 1,756 441 2,923 5.744 1,257 674 1,931 3,813 14,194 9,150 5,044 934 September 29, 2013 $ 1,980 414 2,428 5,538 1,088 572 1,660 3,878 12,917 8,288 4,629 883 946 367 579 1.57 894 343 551 1.48 $