THE KROGER COMPANY Selected Financial Information (Amounts in millions except per share amounts) January 31, 2015 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 $ 8,911 6,933 17,912 30,556 11,403 13,711 25,114 5,442 108,465 85,512 22,953 3,137 Revenue Cost of goods sold Gross profit Operating income Earnings from continuing operations Before income tax expenses Income tax expense Net earnings Basic earnings per share 2,649 902 1,747 $ 3.49 WHOLE FOODS MARKET, INC. Selected Financial Information (Amounts in millions except per share data) Sept 27, 2015 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 $ 1,544 500 3,163 5,741 1,252 65 1,972 3,769 $ 15,389 9,973 5,416 861 Revenue Cost of goods sold Gross profit Operating income Earnings from continuing operations Before income taxes Income tax expense Net earnings Basic earnings per share 878 342 536 $ 1.49 B. Which company appears to have the higher level of financial risk? Explain your answer and identify which of the ratio(s) from Part 1 you used to reach your conclusion