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	10.0%
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 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