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Analyzing, Forecasting, and Interpreting Income Statement and Balance Sheet Following are the income statement and balance sheet of Whole Foods Market, Inc.

Income Statement, For Years Ended (in $ 000s)	2010	2009
Sales	$ 9,005,794	$ 8,031,620
Cost of goods sold and occupancy costs	5,870,393	5,277,310
Gross profit	3,135,401	2,754,310
Direct store expenses	2,375,716	2,145,809
General administrative expenses	272,449	243,749
Pre-opening expenses	38,044	49,218
Relocation, store closures and lease termination costs	11,217	31,185
Operating income	437,975	284,349
Interest expense	(33,048)	(36,856)
Investment and other income	6,854	3,449
Income before income taxes	411,781	250,942
Provision for income taxes	165,948	104,138
Net income	$ 245,833	$ 146,804

Balance Sheet,($ 000s)	2010	2009
Assets
Cash and cash equivalents	$ 131,996	$ 430,130
Short-term investments-available-for-sale securities	329,738	--
Restricted cash	86,802	71,023
Accounts receivable	133,346	104,731
Merchandise inventories	323,487	310,602
Prepaid expenses and other current assets	54,686	51,137
Deferred income taxes	101,464	87,757
Total current assets	1,161,519	1,055,380
Property and equipment, net of accum depr and amortization	1,886,130	1,897,853
Long-term investments--available-for-sale securities	96,146	--
Goodwill	665,224	658,254
Intangible assets, net of accumulated amortization	69,064	73,035
Deferred income taxes	99,156	91,000
Other assets	9,301	7,866
Total assets	$ 3,986,540	$ 3,783,388
Liabilities and shareholders' equity
Current installments of long-term debt and capital lease obligations	$ 410	$ 389
Accounts payable	213,212	189,597
Accrued payroll, bonus and other benefits due team members	244,427	207,983
Dividends payable	--	8,217
Other current liabilities	289,823	277,838
Total current liabilities	747,872	684,024
Long-term debt and capital lease obligations, less current installments	508,288	738,848
Deferred lease liabilities	294,291	250,326
Other long-term liabilities	62,831	69,262
Total liabilities	1,613,282	1,742,460
Series A redeemable preferred stock; $0.01 par value	--	413,052
Shareholders' equity:
Common stock, no par value	1,773,897	1,283,028
Accumulated other comprehensive income	791	(13,367)
Retained earnings	598,570	358,215
Total shareholders' equity	2,373,258	1,627,876
Total liabilities and shareholders' equity	$ 3,986,540	$ 3,783,388

Forecast Whole Foods Market's 2011 income statement using the following relations (assume "no change" for accounts not listed). ($ 000s)

Sales growth	8.0%
Cost of good sold and occupancy costs/Sales	65.2%
Direct store expenses/Sales	26.4%
General and administrative expenses/Sales	3.0%
Pre-opening expenses/Sales	0.4%
Relocation, store closures and lease termination costs	$--
Interest expense	$33,048
Investment and other income	$6,854
Provision for income taxes/Pretax income	40.3%

• Round all answers to the nearest whole number.

• Do not use negative signs with your answers.

Whole Foods Market, Inc. Income Statement, For Years Ended ($ 000s)	2011 Estimated
Sales	?
Cost of goods sold and occupancy costs	?
Gross profit	?
Direct store expenses	?
General and administrative expenses	?
Pre-opening expenses	?
Relocation, store closures and lease termination costs	?
Operating income	?
Interest expense	?
Investment and other income	?
Income before income taxes	?
Provision for income taxes	?
Net income	?

Forecast Whole Foods Market's 2014 balance sheet using the following relations (assume "no change" for accounts not listed). ($ 000s)

Restricted cash	$86,802
Short-term investments-available-for-sale securities	$329,738
Accounts receivable/Sales	1.5%
Merchandise inventories/Sales	3.6%
Prepaid expenses and other current assets/Sales	0.6%
Deferred income taxes (current)	$101,464
Long-term investments--available-for-sales securities	$96,146
Goodwill	$665,224
Intangible assets, net of accumulated amortization	$69,064
Deferred income taxes (noncurrent)	$99,156
Other Assets/Sales	0.1%
Current installments of long-term debt and capital lease obligations	$410
Accounts payable/Sales	2.4%
Accrued payroll, bonus and other benefits due team members/Sales	2.7%
Other current liabilities/Sales	3.2%
Deferred lease liabilities	$294,291
Other long-term liabilities/Sales	0.7%
Series A redeemable preferred stock	$--
Common stock	$1,773,897
Accumulated other comprehensive income	$791
Capital expenditures/Prior year net PPE	13.5%
Depreciation & amortization/Prior year net PPE	14.5%
Dividends/Net income	3.5%

Round answers to the nearest whole number.

Whole Foods Market, Inc. Balance Sheet, ($000s)	2011 Estimated
Assets	?
Cash and cash equivalents	?
Short-term investments-available-for-sale securities	?
Restricted cash	?
Accounts receivable	?
Merchandise inventories	?
Prepaid expenses and other current assets	?
Deferred income taxes	?
Total current assets	?
Property and equipment, net of accum depr and amortization	?
Long-term investments--available-for-sale securities	?
Goodwill	?
Intangible assets, net of accumulated amortization	?
Deferred income taxes	?
Other assets	?
Total assets	?
Liabilities and shareholders' equity	?
Current installments of long-term debt and capital lease obligations	?
Accounts payable	?
Accrued payroll, bonus and other benefits due team members	?
Dividends payable	?
Other current liabilities	?
Total current liabilities	?
Long-term debt and capital lease obligations, less current installments	?
Deferred lease liabilities	?
Other long-term liabilities	?
Total liabilities	?
Series A redeemable preferred stock, $0.01 par value	?
Shareholders' equity:	?
Common stock, no par value	?
Accumulated other comprehensive income	?
Retained earnings	?
Total shareholders' equity	?
Total liabilities and shareholders' equity	?

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