Whole Foods Market, Inc. included these statements in its 2010 annual report.* WHOLE FOODS MARKET, INC. Consolidated Balance Sheets (in thousands) September 26, 2010 and September 27, 2009 Assets 2010 2009 Current Assets: Cash and cash equivalents $ 131,996 $ 430,130 Short-term investments available-for-sale securities 329,738 Restricted cash 86,802 71,023 Accounts receivable 133,346 104,731 Assets 2010 2009 Merchandise inventories $ 323,487 $ 310,602 Prepaid expenses and other current assets 54,686 51,137 Deferred income taxes 101,464 87,757 Total current assets 1,161,519 1,055,380 **Property and equipment, net of accumulated depreciation and amortization 1,886,130 1,897,853 Long-term investments available-for-sale securities 96,146 Goodwill 665,224 658,254 Intangible assets, net of accumulated amortization 69,064 73,035 Deferred income taxes 99,156 91,000 Other assets 9,301 7,866 Total assets $3,986,540 $3,783,388 Liabilities and Shareholders Equity Current Liabilities: Current installments of long-term debt and capital lease obligations $ 410 $ 389 Accounts payable 213,212 189,597 Accrued payroll, bonus and other benefits due team members 244,427 207,983 Dividends payable 8,217 Other current liabilities 289,823 277,838 Total current liabilities 747,872 684,024 Long-term debt and capital lease obligations, less current installments 508,288 738,848 Deferred lease liabilities 294,291 250,326 Other long-term liabilities 62,831 69,262 Total liabilities 1,613,282 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 413,052 Shareholders equity: Common stock, no par value, 300,000 shares authorized; 172,033 and 140,542 shares issued and outstanding at 2010 and 2009, respectively 1,773,897 1,283,028 Accumulated other comprehensive income (loss) 791 (13,367) Retained earnings 598,570 358,215 Total shareholders equity 2,373,258 1,627,876 Commitments and contingencies Total liabilities and shareholders equity $3,986,540 $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 2010 2009 2008 Sales $9,005,794 $8,031,620 $7,953,912 Cost of goods sold and occupancy costs 5,870,393 5,277,310 5,247,207 Gross profit 3,135,401 2,754,310 2,706,705 Direct store expenses 2,375,716 2,145,809 2,107,940 General and administrative expenses 272,449 243,749 270,428 Pre-opening expenses 38,044 49,218 55,554 Relocation, store closure and lease termination costs 11,217 31,185 36,545 Operating income 437,975 284,349 236,238 Interest expense (33,048) (36,856) (36,416 2010 2009 2008 Investment and other income $ 6,854 $ 3,449 $ 6,697 Income before income taxes 411,781 250,942 206,519 Provision for income taxes 165,948 104,138 91,995 Net income 245,833 146,804 114,524 Preferred stock dividends 5,478 28,050 Income available to common shareholders $ 240,355 $ 118,754 $ 114,524 Basic earnings per share $ 1.45 $ 0.85 $ 0.82 Weighted average shares outstanding 166,244 140,414 139,886 Diluted earnings per share $ 1.43 $ 0.85 $ 0.82 Weighted average shares outstanding, diluted basis 171,710 140,414 140,011 Dividends declared per common share $ $ $ 0.60 Required a. Compute the following for 2010 and 2009: 1. Net profit margin 2. Total asset turnover (use 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 fixed 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)