Obtain Whole Foods' 2007 annual report either through the ''Investor Relations'' portion of its website (do a web search for Whole Foods investor relations) or go to www.sec.gov and click ''Search for company filings'' under ''Filings & Forms (EDGAR).''

Required:

1. What are Whole Foods' total current liabilities for 2007?

2. How much of their current liabilities is the current portion of long-term liabilities?

3. How much is the current portion of long-term debt (see Note 8)?

4. Look at Item 3 in the 10-K (this discusses Whole Foods' legal proceedings).

Describe the major current legal proceedings involving 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?

5. Calculate Whole Foods' current ratio for 2007 and 2006.

6. Discuss Whole Foods' short-term liquidity based on the values and trends of the current ratio.

7. Calculate Whole Foods' quick ratio and cash ratio for 2007 and 2006.

8. Discuss the implications of these ratios when evaluating Whole Foods' short-term liquidity.

9. Calculate Whole Foods' operating cash flows ratio.

10. Discuss the implications of this ratio when evaluating Whole Foods' short-term liquidity.