company Whole Food Market, find the data online and calculate AQI example Asset

Question

company Whole Food Market, find the data online and calculate AQI

example

Asset Quality Index (AQI)

The AQI measures the proportion of total assets for which future benefits are uncertain. This index reflects the change in asset realization risk by comparing current assets and property, plant, and equipment with total assets. An AQI greater than 1 means the company has potentially deferred costs in an effort to increase the bottom line.

receivables current year/ sales current year Days' Sales in Receivables Index = ________________________________

receivables prior year/sales prior year

Companies in the study that manipulated earnings had median AQIs of 1 and mean of 1.254. The evidence of Enron's cost deferrals in 1997 is reflected in the AQI of 1.308.

Explanation / Answer

Whole Food Market's AQI = 0.9509

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