Following are the income statement and balance sheet of Whole Fouds Market, Inc.

a. Forecast Whole Foods Market's 2009 income statement and balance sheet using the following relations; assume no change for all other accounts not listed below ( \(\$ 000\) s).

b. What does the forecasted cash balance from part a reveal to us about the forecasted financing needs of the company? Whole Foods reported that its long-term debt was downgraded in 2008. What insight do your forecasts provide for reasons for this downgrade?

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Income Statement, For Years Ended (in $ 000s) Sales... Cost of goods sold and occupancy costs.. 2008 2007 2006 $7,953,912 $6,591,773 $5,607,376 5,247,207 4,295,170 3,647,734 Gross profit........ 2,706,705 2,296,603 1,959,642 Direct store expenses. 2,107,940 1,711,229 1,421,968 General and administrative expenses 270,428 217,743 181,244 Pre-opening expenses. 55,554 59,319 32,058 Relocation, store closures and lease termination costs.. 36.545 10,861 5,363 Operating income... 236,238 297,451 319,009 Interest expense.. (36,416) (4,208) (32) Investment and other income. 6,697 11,324 20,736 Income before income taxes 206,519 304,567 339,713 Provision for income taxes. Net income. 91,995 121,827 135,885 $ 114,524 $ 182,740 $ 203,828