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Assignment 3: LASA 1: Whole Foods Market, Inc. and MyAccountingLab

Review Whole Foods Market, Inc?s 2010 Annual report, company information and investor information(see the link: Whole Foods Market, Inc. Investor Relations in the webilography) and write a 5-7 page paper following APA guidelines which addresses the following:

1. Summarize the company?s financial performance for 2010. Do you think they satisfied stockholder expectations? Why or why not?
2. Explain three business risks or threats that might threaten Whole Foods ability to accomplish their financial goals for the next 3 years. Use examples and references to support your response.
3. Describe three examples of control activities Whole Foods Market, Inc. could use to minimize these risks.
4. WhatisyouroverallimpressionofWholeFoodsMarket,Inc.?sannualreport?Isitafinancialaccountingdocumentoramanagerialaccountingdocument?Whoisthetargetaudience?Didtheannualreportpresentapositiveornegativeimageofthecompany?Providesupportforyourresponses.

I will supply paper but it needs a complete rewrite..SEE ATTACHED

Whole Foods Market 1 : Whole Foods Market Principles of Management Accounting | ACC202 A01 Whole Foods Inc., engages in retailing business of food that are natural and organic in its composition they operate supermarkets throughout Canada, UK and the United States with operating sales of 18 billion. The company was started in 1980 headquarters in Austin Texas, In 2010 Whole Foods financial performance relative to 2009 was higher than previous year of 9 billion with total operating expenses of 2.6 billion with operating income after expenses from General and administrative cost., (financials.morningstar.com/income-statement,2015). Whole Foods Inc. preferred dividend which was paid back to its share holders and shares Whole Foods Market 2 were diluted on the bottom line its share holders were able to retrieve earning in addition to paying dividend...EBITA- (Earnings before Interest ,Taxes ,depreciation and amortization), (http://www.accountingtools.com ,2015). The financial reporting for 2010 the shareholders and executives would have been pleased with the expectations with EBITA being 720 million on gross profit of 3.1 billion/w operating income of 438 million. The ability for Whole Foods Inc to bring back to the share holders earning's and keep the company viable is evident that management have been able to maintain operations that keeps cost in line and their ability to earn a profit speaks to operation cohesiveness amongst executives, manager and their employee's. Whole foods have several threats that can erode profit and derail their ability to maintain profitability 1. Refusal to clean with about their use of GMO's in store brands products which the American segment have shifted towards healthier foods and how foods are brought to them by way of farming or chemically induced. 2, Whole Foods have not been a proponent of unions they have steadfastly stood against the labor were they have fired individuals for trying to organize labor union, in 2006 truck drivers working at a Bay Area facility had voted to unionize with the Teamsters these two drivers were fired they changed their policy of sick leave, froze wage increases and ultimately withheld information that could have help negotiate a contract. (United Farm Workers, 199,.2015) Lastly, Whole foods has been seen trying obfuscate their fiduciary responsibility to its shareholders by not disclosing it's executive pay salary has been reportedly to be 14 times the average worker, the only issue here is not that (WF) Whole Foods paying its executive what it wants but the deceptive practice behind what there executive actually receives. All three of these issues are clearly a problem for (WF) Whole Foods that could significantly lose its ability to obtain its financial over the next three years because of anti - labor issues, perception from the public that Whole Foods has been seen as company that isn't worth price of the share of stock that they reportedly asking for. Their public image can shed more light on their buying practices, its poor working conditions and low wages are two of main topics in the American core disposition were everything many large companies are doing is easily obtained Whole Foods Market 3 by the social media quickly and information can't been hidden. The ability for Whole Foods Inc to implement controls these activities are evident in order to maintain share holders interest is for the management to honestly deal with its labor woe's with listening to it working and gain their confidence on what they are doing to make employee's feel better about their environment, secondly dealing with wage issues that could be a drag on earnings for the company,( United Farm Workers, 199,.2015), Also Whole can't leave the public perception in the air about it practices of food it buys from farmers and its use of chemicals of the food that they sell. Whole Foods needs to have the ability to steadfast to their policy of wholesome foods organically grown to which they have claimed to the public and have been caught on it using deceptive practices to hide their true practices, (Forbes.com, 2015). Examples of Whole Foods setting out bring to amend to these systems 1. Set up employee work place wellness that supports sustain behaviors to improve a quality of life for all of its employees which would benefit the organizations bottom line. 2. Whole Foods can implement a system to remove the GMO bumper sticker from its name by ensuring that food is labeled (GMO) Genetically Modified Foods, work with farmers, manufactures to increase the supply of non- GMO items,3. Management needs to address the company's position of executive pay with respects to its average low wage worker that gives each member of the organization that all the money is floating to the top. This can be done by ensuring that employees are vested in the company's success by of stock positions after for everyone who wants to invest in that company, 401k returns matches the work being done by its employees can give the organization the ability to retain its employee and be able to financially meet the obligation to its employee's and their shareholders. These main points can have a greater impact on (WF) Whole Foods bottom line and their ability to hit their forecast. Whole Foods Inc. annual report signals a strong performance with its annual sales reaching Whole Foods Market 4 15 billion and the ability to maintain its total operating expense being that not much more than prior year expenses, while growing their operating income and after all expense have been paid, (financials.morningstar.com/income-statement,2015). The company has been able to operate in the positive on earnings per share which grew from the prior year on basic stock and diluted this is a positive sign and their ability to increase the (EBITA) which means that higher the EBITA -1,400 million margin verses 1,311 million, the less operating expenses eat into a company's bottom line, leading to a more profitable operation, Including (WF) Whole Foods ability to increase shareholders profit or earning per share from a PY of percentage 1.5 to a 1.6 basic share Whole Foods continued focus on profitability is evident however the main albatross is to garner enough systematic approach to deal with the lingering issues that could impact their bottom line. The report that is given on a annual basis is a accounting guide to performance based on the reporting guidelines for G.A.A.P and the rules that reporting of the rules such as (FASB), financial accounting standards board which governs the rules for G.A.A.P..... Including the Security Exchange Commission which allows for the reporting to the general audience which is the general public, these governing bodies ensures a healthy reassurance of reporting for all companies that do business and want to go public. The ability to report positively or negatively a company's financial health is to is both good and bad those seeking investors and those seeking a risk for big gains can gauge their position whether to invest or not, and those seeking to see the financial health in terms of the company needing financing they have to the financial data to mark their position whether to grant any loans etc. Whole Foods Market 5 Reference: 1.http://financials.morningstar.com/incomestatement/is.html? t=WFM®ion=usa&culture=US 2. http://www.accountingtools.com/questions-and-answers/ebitda-coverage-ratio.html 3. http://www.forbes.com/companies/whole-foods-market 4. United Farm Workers, 199 - UFW: The Official Web Page of the United Farm, 2015