Please help answer Problem 5.22. Parts A, B, C, and D are required for full answer.

answer Problem 5.22. Parts A, B, C, and D are required for full answer.

une Company, Form 10-K for the Fl Ended December 30, 2007 Financial Statements, Preparing an Alterna- LO 5-2 Decomposition of and Financial Flexibility. tive for 2007 and 2008 for Whole Foods Market, Inc. Exhibit Exhibit 5.25 presents sheets 2006-2008. 5.26 presents income statements for REQUIRED turnover, and leverage. Use a. Prepare the standard decomposition of ROCE into margin, average balances for balance sheet amounts. b. Assume that all cash is operating cash (that is, no excess cash). Also assume that deferred lease liabilities are operating. Prepare the alternative decomposition of ROCE by comput- ing NOPAT, net financing expense (after tax), operating profit margin, net operating assets turnover, operating ROA, leverage, and spread for 2008. Use average balances for balance sheet amounts. use the same assumptions as in Requirement b, except that all cash is a financing asset (that is, all cash is excess cash and deferred lease liabilities are a financing obli gation. Prepare the alternative decomposition of ROCE by computing NOPAT, net operating expense (after tax, operating profit margin, net operating turnover, amounts ROA, leverage, and spread as sheet for 2008. Use average balances for balance d. Does the different treatment of financial assets and liabilities affect inferences you from the decomposition of ROCE? Explain draw