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 Investment and other income 6,854 3.449 Income before income taxes 411,781250,942 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 53,986,540 $ 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 2373,258 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) 8.096 65.296 26.4% 3.096 0.4% Sales growth Cost of good sold and occupancy costs/Sales Direct store expenses/Sales General and administrative expenses/Sales Pre-opening expenses/Sales Relocation, store closures and lease termination costs Interest expense Investment and other income Provision for income taxes/Pretax income $33,048 $6,854 40.396 Round all answers to the nearest whole number. Do not use negative signs with your answers. Whole Foods Market, Inc. Income Statement, For Years Ended (S 000 Sales Cost of goods sold and occupancy costs Gross profit Direct store expenses General and administrative expenses Pre-opening expenses Relocation, store closures and lease termination costs Operating income Interest expense Investment and other income Income before income taxes Provision for income taxes Net income 2011 Estimated 9,726,258 6,341,520 3,384,738 2,567,732 291,788 38,905 0 486,313 33,048 6,854 460,119 185,428 274,691 Forecast Whole Foods Market's 2014 balance sheet using the following relations (assume "no change for accounts not listed). ($ 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 596,146 Goodwill $665,224 Intangible assets, net of accumulated amortization $69,064 Deferred income taxes (noncurrent) 599,156 Other Assets/Sales 0.196 Current installments of long-term debt and capital lease obligations $410 Accounts payable/Sales 2.496 Accrued payroll, bonus and other benefits due team members/Sales 2.796 Other current liabilities/Sales 3.29 Deferred lease liabilities $294291 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 Round answers to the nearest whole number. Whole Foods Market, Inc. Balance Sheet, ($000s) 2011 Estimated Assets Cash and cash equivalents 145,894 x Short-term investments-available-for-sale securities 329,738 Restricted cash 86,802 Accounts receivable 145,894 Merchandise inventories 350,145 Prepaid expenses and other current assets 58,358 Deferred income taxes 101,464 Total current assets 1,541,680 x Property and equipment, net of accum depr and amortization 1,867,269 Long-term investments--available-for-sale securities 96,146 Goodwill 665,224 Intangible assets, net of accumulated amortization 69,064 Deferred income taxes 99,156 Other assets 9,726 Total assets $ 4,024,879 x Liabilities and shareholders' equity Current installments of long-term debt and capital lease obligations 410 Accounts payable 233,430 Accrued payroll, bonus and other benefits due team members 262,609 Dividends payable 9,614 Other current liabilities 311,240 Total current liabilities 817,304 x Long-term debt and capital lease obligations, less current installments 508,288 x Deferred lease liabilities 294,291 Other long-term liabilities 68,084 Total liabilities 1,687,966 x Series A redeemable preferred stock, $0.01 par value 0 Shareholders' equity: Common stock, no par value 1,773,897 Accumulated other comprehensive income 791 Retained earnings 562,225 x Total shareholders' equity 2,336,913 x Total liabilities and shareholders' equity 4,093,818 x