Required: Use an Excel file to answer the following questions.Compute the following ratios for the companies’ 2014 fiscal years. (Use formulas):Current ratioAverage days to sell inventory. (Use average inventory.)Debt to assets ratio.Return on investment. (Use average assets and use “earnings from continuing operations” rather than “net earnings.”)Gross margin percentage.Asset turnover. (Use average assets.)Net margin. (Use “earnings from continuing operations” rather than “net earnings.”)Plant assets to long-term debt ratio.Which company appears to be more profitable? Explain your answer and identify which ratio(s) from Requirement a you used to reach your conclusion.Which company appears to have the higher level of financial risk? Explain your answer and identify which ratio(s) from Requirement a you used to reach your conclusion.Which company appears to be charging higher prices for its goods? Explain your answer and identify which ratio(s) from Requirement a you used to reach your conclusion.Which company appears to be the more efficient at using its assets? Explain your answer and identify which ratio(s) from Requirement a you used to reach your conclusion. WHOLE FOODS MARKET, INC.Selected Financial Information(amounts in millions except per share data)September 28,2014September 29,2013$ 1,756$ 1,980414Total current assetsMerchandise inventory441Property and equipment, net of depreciation2,9232,428Total assets5,7445,538Total current liabilities1,2571,088Total long-term liabilities674572Total liabilities1,9311,660Total stockholders' equity3,8133,878Revenues14,19412,9178,288Cost of goods soldGross profitOperating incomeEarnings from continuing operations9,1505,0444,629934883before income taxes946894Income tax expense367343579Net earningsBasic earnings per share551$ 1.57$ 1.48 THE KROGER COMPANYSelected Financial Information(amounts in millions, except per share amounts)February 1,January 31,20152014$ 8,911$ 8,830Total current assetsMerchandise inventoryProperty and equipment, net of depreciation8,1787,95117,91216,893Total assets30,55629,281Total current liabilities11,40310,705Total long-term liabilities13,71113,181Total liabilities25,11423,886Total shareholders' equity5,4425,395Revenues108,46598,375Cost of goods soldGross profitOperating incomeEarnings from continuing operationsbefore income tax expense85,51278,13822,95320,2373,1372,7252,2827512,649Income tax expense902Net earningsBasic earnings per share1,531$ 1.471,7472$1.75

Note: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…

Answered: Required: Use an Excel file to answer…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Question

Required: Use an Excel file to answer the following questions.

Compute the following ratios for the companies’ 2014 fiscal years. (Use formulas):
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. Net margin. (Use “earnings from continuing operations” rather than “net earnings.”)
8. Plant assets to long-term debt ratio.
Which company appears to be more profitable? Explain your answer and identify which ratio(s) from Requirement a you used to reach your conclusion.
Which company appears to have the higher level of financial risk? Explain your answer and identify which ratio(s) from Requirement a you used to reach your conclusion.
Which company appears to be charging higher prices for its goods? Explain your answer and identify which ratio(s) from Requirement a you used to reach your conclusion.
Which company appears to be the more efficient at using its assets? Explain your answer and identify which ratio(s) from Requirement a you used to reach your conclusion.

WHOLE FOODS MARKET, INC.
Selected Financial Information
(amounts in millions except per share data)
September 28,
2014
September 29,
2013
$ 1,756
$ 1,980
414
Total current assets
Merchandise inventory
441
Property and equipment, net of depreciation
2,923
2,428
Total assets
5,744
5,538
Total current liabilities
1,257
1,088
Total long-term liabilities
674
572
Total liabilities
1,931
1,660
Total stockholders' equity
3,813
3,878
Revenues
14,194
12,917
8,288
Cost of goods sold
Gross profit
Operating income
Earnings from continuing operations
9,150
5,044
4,629
934
883
before income taxes
946
894
Income tax expense
367
343
579
Net earnings
Basic earnings per share
551
$ 1.57
$ 1.48

THE KROGER COMPANY
Selected Financial Information
(amounts in millions, except per share amounts)
February 1,
January 31,
2015
2014
$ 8,911
$ 8,830
Total current assets
Merchandise inventory
Property and equipment, net of depreciation
8,178
7,951
17,912
16,893
Total assets
30,556
29,281
Total current liabilities
11,403
10,705
Total long-term liabilities
13,711
13,181
Total liabilities
25,114
23,886
Total shareholders' equity
5,442
5,395
Revenues
108,465
98,375
Cost of goods sold
Gross profit
Operating income
Earnings from continuing operations
before income tax expense
85,512
78,138
22,953
20,237
3,137
2,725
2,282
751
2,649
Income tax expense
902
Net earnings
Basic earnings per share
1,531
$ 1.47
1,747
2$
1.75

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 2 steps with 2 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions