Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Whole Foods Market, Inc. included these statements in its 2010 annual report. Required: A: Compute the following for 2010 and 2009: 1. Net profit margin,

Whole Foods Market, Inc. included these statements in its 2010 annual report.

Required: A: Compute the following for 2010 and 2009:

1. Net profit margin, 2. Total asset turnover (use the year-end assets), 3. Return on assets (use year-end assets), 4. Operating income margin, 5. Return on operating assets (use year-end assets), 6. Sales to fixed assets (use year-end assets), 7. Return on investment (use year-end balance sheet accounts), 8. Return on total equity (use year-end equity), 9. Gross profit margin. B: Comment on the trends in (a).

Whole Foods Market, Inc. Consolidated Balance Sheets (in thousands) September 26, 2010 and September 27, 2009:

Assets: Current assets : Cash and cash equivalents (for 2010) $131,996; (for 2009) $430,130; Short-term investments-avalble for sale securities (for 2010) 329,738, (for 2009) 0; Restricted cash (for 2010) 86,802; (for 2009) 71,023; Accounts receivable (for 2010) 133,346, (for 2009) 104,731; Merchandise inventories (for 2010) 323,487 (for 2009) 310,602; Prepaid expenses and other current assets (for 2010) 54,686, (for 2009) 51,137; Deferred income taxes (for 2010) 101,464, (for 2009) 87,757; Total current assets (for 2010) 1,161,519, (for 2009) 1,055,380; Property and equipment, net of accumulated depreciation and amortization (for 2010) 1,886,130, (for 2009) 1,897,853; Long-term investments- available for sale securities (for 2010) 96,146, (for 2009) 0; Goodwill (for 2010) 665,224, (for 2009) 658,254; Intangible assets, net of accumulated amortization (for 2010) 69,064, (for 2009) 73,035; Deferred income taxes (for 2010) 99,156, (for 2009) 91,000; Other assets (for 2010) 9,301, (for 2009) 7,866; Total assets (for 2010) 3,986,540, (for 2009) 3,783,388; Liabilites and Shareholders Equity: Current LiabilitesL Current installments of long-term debt and capital lease obligations (for 2010) $410; (for 2009) $389; Accounts payable (for 2010) 213,212, (for 2009) 189,597; Accrued payroll, bonus and other benefits due team members (for 2010) 244,427, (for 2009) 207,983; Dividends payable (for 2010) 0, (for 2009) 8,217; Other current liabilities (for 2010) 289,823, (for 2009) 277,838; Total current liabilities (for 2010) 747,872, (for 2009) 684,024; Long-term debt and capital lease obligations, less current installments (for 2010) 508,288, (for 2009) 738,848; Deferred lease liabilities (for 2010) 294,291, (for 2009) 250,326; Other long-term liabilities (for 2010) 62,831, (for 2009) 69,262; Total liabilities (for 2010) 1,613,282, (for 2009) 1,742,460; Series A redeemable preferred stock, $0.10 par value, 425 shares authorized; zero and 425 shares issued and outstanding at 2010 and 2009, respectively (for 2010) 0, (for 2009) 413,052; Shareholders Equity: Common stock, no par value, 300,000 shares authorized; 172,033 and 140,542 shares issued and outstandng at 2010 and 2009, respectively (for 2010) 1,773,897, (for 2009) 1,283,028; Accumulated other comprehensive income (loss) (for 2010) 791, (for 2009) -13,367; Retained earnings (for 2010) 598,570, (for 2009) 358,215; Total shareholders equity (for 2010) 2,373,258, (for 2009) 3,783,388; Whole Foods Market, Inc. Consolidated Statements of Operations (in thousands, except per share amounts) Fiscal years ended September 26, 2010, September 27, 2009 and September 28, 2008: Sales (for 2010) $9,005,794, (for 2009) $8,031,620, (for 2008) $7,953,912; Cost of goods sold and occupancy costs (for 2010) 5,870,393, (for 2009) 5,277,310, (for 2008) 5,247,207; Gross profit (for 2010) 3,135,401, (for 2009) 2,754,310, (for 2008) 2,706,705; Direct store expenses (for 2010) 2,375,716, (for 2009) 2,145,809, (for 2008) 2,107,940; General and administrative expenses (for 2010) 272,449, (for 2009) 243,749, (for 2008) 270,428; Pre-opening expenses (for 2010) 38,044, (for 2009) 49,218, (for 2008) 55,554; Relocation, store closure and lease termination costs (for 2010) 11,217, (for 2009) 31,185, (for 2008) 36,545; Operating income (for 2010) 437,975, (for 2009) 284,349, (for 2008) 236,238; Interest expense (for 2010) -33,048, (for 2009) -36,856, (for 2008) -36,416; Investment and other income (for 2010) 6,854, (for 2009) 3,449, (for 2008) 6,697; income before taxes (for 2010) 411,781, (for 2009) 250,942, ((for 2008) 206,519; Provision for income taxes (for 2010) 165,948, (for 2009) 104,138, (for 2008) 91,995; Net income (for 2010) 245,833, (for 2009) 146,804, (for 2008) 114,524; Preferred stock dividends (for 2010) 5,478, (for 2009) 28,050, (for 2008) 0; Income available to common shareholders (for 2010) 240,355, (for 2009) 118,754, (for 2008) 114,524; Basic earings (for 2010) 1.45, (for 2009) 0.85, (for 2008) 0.82; Weighted average shares outstanding (for 2010) 166.244, (for 2009) 140,414, (for 2008) 139,886; Diluted earnings per share (for 2010) 1.43, (for 2009) 0.85, (for 2008) 0.82; Weighted average shares outstanding diluted basis (for 2010) 171,710, (for 2009) 140,414, (for 2008) 140,011; Dividends declared per common share (for 2010) 0, (for 2009) 0, (for 2008) 0.60.

PLEASE HELP ME WITH THIS I JUST DO NOT UNDERSTAND HOW TO DO THIS !!!!!!!! MY GRADE DEPENDS ON THIS QUESTION!!!!

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions

Question

What would you like them to do differently?

Answered: 1 week ago

Question

What are they doing well?

Answered: 1 week ago