Question: Prepare a letter to explain the difference between operating and capital leases and answer the following questions which relate to 2011 Whole Foods Market, Inc.

Prepare a letter to explain the difference between operating and capital leases and answer the following questions which relate to 2011 Whole Foods Market, Inc. financial statements, unless stated otherwise.

-What is the net amount of capital lease assets on the balance sheet? -What is the total amount of capital lease obligations on the balance sheet? -Calculate Whole Food Markets total debt to total assets ratio. -What entry would Whole Food Market make in 2011 to record the effects of capital leases existing at September 25, 2011? You may omit the depreciation entry. -What is the amount of operating lease obligations on the balance sheet? -What is the present value of operating lease payments? -What journal entry would be made to constructively capitalize the leases? (ignore the effects of taxes)

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