Obtain Whole Foods’ 2009 annual report (filed November 27, 2009) either through the ‘‘Investor Relations’’ portion of its website (do a web search for Whole Foods investor relations) or go to http://www.sec.gov and click ‘‘Search for Company Filings’’ under ‘‘Filings & Forms.’’
1. What are Whole Foods’ total current liabilities for 2009?
2. How much of their current liabilities is the current portion of all long-term liabilities (including the current portion of capital lease obligations)?
3. Look at Item 3 in the 10-K (this discusses Whole Foods’ legal proceedings). Describe Kottaras v. Whole Foods. Based on the information in item 3, do you believe that Whole Foods has recognized a contingent liability related to these current legal proceedings?
4. Calculate Whole Foods’ current ratio for 2009 and 2008. (Note: Round answers to two decimal places.)
5. Discuss Whole Foods’ short-term liquidity based on the values and trends of the current ratio.
6. Calculate Whole Foods’ quick ratio and cash ratio for 2009 and 2008. (Note: Round answers to two decimal places.)
7. Discuss the implications of these ratios when evaluating Whole Foods’ short-term liquidity.
8. Calculate Whole Foods’ operating cash flows ratio.
9. Discuss the implications of this ratio when evaluating Whole Foods’ short-term liquidity.