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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

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 (loss) 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 11.0%
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 $0
Interest expense $(33,048)
Investment and other income $6,854
Provision for income taxes/Pretax income 40.3%

Instructions: Round answers to the nearest whole number. Do not use negative signs with your answers. Remember to use rounded forecasted sales with subsequent calculations.

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

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