Assignment:
Go to www.safeway.com to locate Safeway's home page and financial information. You can follow the links to Our Company, then Investor Relations, and the Annual Reports.
2007 Annual Report
Answer the following questions about the company:
Question 1. What is Safeway's main business? How many stores does it operate?
Question 2. Examine Safeway's income statement. What does the company call this statement? Does it use the single-step or multiple-step format? What subtitles does Safeway use in its income statement? What was Safeway's net income in the most recent year? Was this more or less income that the company had in the preceding year?
Question 3. Now look at Safeway's balance sheet. What is the company's largest current asset? Its largest current liability? How much goodwill does the company show? How was this goodwill created?
Question 4. In its stockholders' equity section, Safeway lists treasury stock. What does this represent?
Question 5. Examine Safeway's statement of cash flows. Is the company's cash flow from operating activities more or less than its net income? Why? Did cash increase or decrease during the year? By how much?
Question 6. Compare Safeway's depreciation and amortization to its cash used for additions to its property. Which is larger? What does this tell you?