Effects of inventory valuation methods; Whole Foods Market
Response to the following problem:
EDGAR, the Electronic Data Gathering, Analysis, and Retrieval system, performs automated collection, validation, indexing, and forwarding of submission by companies and others who are required by law to file forms with the U.S. Securities and Exchange Commission (SEC). All publicly traded domestic companies use EDGAR to make the majority of their filings. (Some foreign companies file voluntarily.) Form 10-K, which includes the annual report, is required to be filed on EDGAR. The SEC makes this information available on the Internet.
Required:
1. Access EDGAR on the Internet. (website : sec-gov)
2. Search for Whole Foods Market, Inc. Access the 10-K filing for the most recent fiscal year. Search or scroll to find the financial statements and related notes.
3. Answer the following questions related to the company's inventories:
a. What method(s) does the company use to value its inventories?
b. Calculate what cost of sales would have been for the year if the company had used FIFO to value its inventories.
c. Calculate inventory turnover for the year using the reported numbers.