Required

a$.$ Compute the following ratios for the companies$2009$ 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 $$net earnings.$)$

$(5)$ Gross margin percentage.

$(6)$ Asset turnover. $($Use average assets.$)$

$(7)$ Return on sales. $($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 of the ratio$($s$)$ from Requirement a you used to reach your conclusion.

c$.$ Which company appears to have the higher level of financial risk? Explain your answer and identify which of the ratio$($s$)$ from Requirement a you used to reach your conclusion.

d$.$ Which company appears to be charging higher prices for its goods? Explain your answer and identify which of the ratio$($s$)$ from Requirement a you used to reach your conclusion.

e$.$ Which company appears to be the more efficient at using its assets? Explain your answer and identify which of the ratio$($s$)$ from Requirement a you used to reach your conclusion.

THE KROGER COMPANY

Selected Financial Information $($Amounts in millions, except per share amounts$)$

Total current assets

Merchandise inventories

Property and equipment, net of depreciation Total assets

Total current liabilities

Total long$-$term liabilities

Total liabilities

Total shareholders$$ equity

Revenue

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

$

$7,206$

$6,45913,16123,211$

$7,62910,31117,940$

January $31,2009$

February $2,2008$

$ $7,1146,06312,49822,2998,6898,69617,3854,914$

$

$58,56417,4362,451$

$1,9667171,2491\mathrm{.}92$

$53,77916,4562,301$

$1,8276461,181$ $ $1\mathrm{.}71$

$5,27176,00070,235$WHOLE FOODS MARKET, INC.

Selected Financial Information $($Amounts in millions except per share data$)$

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

September $27,2009$

$$1,0553111,8983,7836841,0581,7422,041$

September $28,2008$

$ $6233271,9003,3816661,2091,8751,506$

Revenues $$8,032$$$7,954$

Cost of goods sold

Gross profit

Operating income

Earnings from continuing operations before

income taxes

Income tax expense

Net earnings

Basic earnings per share

$5,2772,754284$

$251104147$

$ $0\mathrm{.}85$

$5,2472,707236$

$20792115$ $ $0\mathrm{.}82$