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I need some assistance please. Attached is a business accounting question that I am struggling with. Analyzing Kroger and Whole Foods The following information relates
I need some assistance please. Attached is a business accounting question that I am struggling with.
Analyzing Kroger and Whole Foods The following information relates to The Kroger Company for its 2015 and 2014 fisccal years, and Who Foods Market Inc. for its 2014 and 213 fiscal years. The Kroger Company Selected Financial Information (amounts in millions, except per share amount) 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 COGS Gross profit Operating expense income 31-Jan-15 $8,911.00 $8,178.00 $17,912.00 $30,556.00 $11,403.00 $13,711.00 $25,114.00 $5,442.00 $108,465.00 $85,512.00 $22,953.00 $3,137.00 $2,649.00 $902.00 $1,747.00 $1.75 Income Tax expense Net earnings Basic earnings per share Whole Foods Market, Inc Selected Financial Information (amounts in millions, except per share amount) 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 COGS Gross profit Operating income expense 28-Sep-14 $1,756.00 $441.00 $923.00 $5,744.00 $1,257.00 $674.00 $1,931.00 $3,813.00 $14,194.00 $9,150.00 $5,044.00 $934.00 $946.00 Income Tax expense Net earnings Basic earnings per share $367.00 $579.00 $1.57 Questions a. Compute the following ratios for the companies' 2014 fiscal years: 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 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. b. Which company appears to be more profitable? Explain your answer and identify which ratio(s) from conclusion. c. Which company appears to have the higher level of financial risk? Explain your answer and identify w reach yourcompany conclusion. d. Which appears to be charging higher prices for its goods? Explain your answer and identify reach your conclusion. e. Which company appears to be the more efficient at using its assets? Explain your answer and identify reach your conclusion. A. 1 Current ratio Current Assets / Current liabilities Kroger 8830 / 10705 2 Average days to sell inventory average inventory / COGS x 365 Kroger 7951/78138*365 82.48% 37.14 Days Whole Foods 1756 / 1257 Whole Foods 441/9150*365 3 Debt to assets ratio total debt / total assets Kroger 23886/2981 4 ROI investment revenue - investment cost / investment cost Kroger 2282-2981 -699/2981 801.27% Whole Foods 1931/5744 -699 -23.45% Whole Foods 894-5744 -4850/5744 14 fisccal years, and Whole 1-Feb-14 $8,830.00 $7,951.00 $16,893.00 $2,981.00 $10,705.00 $13,181.00 $23,886.00 $5,395.00 $98,375.00 $78,138.00 $20,237.00 $2,725.00 $2,282.00 $751.00 $1,531.00 $1.47 29-Sep-13 $1,980.00 $414.00 $2,428.00 $5,538.00 $1,088.00 $572.00 $1,660.00 $3,878.00 $12,917.00 $8,288.00 $4,629.00 $883.00 $894.00 $343.00 $551.00 $1.48 g operations\" rather than \"net earnings.\") nings.\") entify which ratio(s) from Requirement a you used to reach your our answer and identify which ratio(s) from Requirement a you used to your answer and identify which ratio(s) from Requirement a you used to your answer and identify which ratio(s) from Requirement a you used to Whole Foods 139.70% Whole Foods 17.59 Days Whole Foods 33.62% Whole Foods -4850 -84.44%Step by Step Solution
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