Balance Sheet: 1. Forecast the 2017 income statement for Whole Foods using the following forecast assumptions, which are expressed as a percentage of sales unless otherwise noted ($ in millions). Income Statement: WHOLE FOODS MARKET INC. Consolidated Statements of Operations WHOLE FOODS MARKET INC. Consolidated Statements of Operations September 25, 2016 September 27, 2015 Sept 25, 2016 Fiscal Years Ended (in millions) In millions Sept 27, 2015 196 65.69 28.596 0.49 $0 No change No change Sales growth... Cost of goods sold and occupancy costs... Selling, general and administrative expenses .... Pre-opening expenses... Relocation, store closure and lease termination costs Interest expense..... Investment and other income... Provision for income taxes as a percentage of pretax income.. $15,389 9.973 5,416 $15.724 10,313 5,411 4,477 64 $ 351 $ 237 4,472 3796 Sales.... Cost of goods sold and occupancy costs............... Gross profit. ........... Selling, 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.... 857 861 2. Forecast the 2017 balance sheet for Whole Foods using the following forecast assumptions (S in millions) (41) 1975 878 3,442 3.163 827 320 710 507 $ 536 1.89 3.396 1.196 1.396 0.696 2.096 2.696 3.79 15.096 5.096 $6,341 Assets Current 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 accumulated depreciation 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 liabilities 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 capital lease obligations, less current installments. Deferred lease liabilities.. Other long-term liabilities..... Total liabilities.... Shareholders' equity Common stock, no par value, 1200 shares authorized: 377.0 and 377.1 shares issued: 318.3 and 348.9 shares outstanding at 2016 and 2015, respectively. ... Common stock in treasury, at cost, 58.7 and 28.2 shares at 2016 and 2015, respectively............ Accumulated other comprehensive loss....... Retained earnings ... Total shareholders' equity... Total liabilities and shareholders' equity........ Accounts receivable/Sales. Merchandise inventories/Sales .. Prepaid expenses and other current assets/Sales... Deferred income taxes (current assets)/Sales ... Deferred income taxes (noncurrent assetsy Sales ...... Accounts payable/Sales Accrued payroll, bonus and other benefits due team members/Sales ... Other current liabilities/Sales ..... Depreciation expense as a percentage of PPE, net, at start of the year. ....... CAPEX and development of new properties (all PPE) as a percentage of Sales Amortization of intangible assets.... Dividends payable as a percentage of dividends.. Long-term debt repayment due in 2017 .. Long-term debt repayment due in 2018 .. Increase in treasury stock in 2017 Dividends as percentage of net income.... $ 3 307 S6 25.096 $3 $65 $200 30.096 3. What does the forecasted adjustment to balance the accounting equation from part a reveal to us about the forecasted cash balance and related financing needs of the company? 3,117 2.933 (2.026) (32) 2349 3 224 $6,341 2,904 (1,124) (28) 2.017 3.769 $5,741 Balance Sheet: 1. Forecast the 2017 income statement for Whole Foods using the following forecast assumptions, which are expressed as a percentage of sales unless otherwise noted ($ in millions). Income Statement: WHOLE FOODS MARKET INC. Consolidated Statements of Operations WHOLE FOODS MARKET INC. Consolidated Statements of Operations September 25, 2016 September 27, 2015 Sept 25, 2016 Fiscal Years Ended (in millions) In millions Sept 27, 2015 196 65.69 28.596 0.49 $0 No change No change Sales growth... Cost of goods sold and occupancy costs... Selling, general and administrative expenses .... Pre-opening expenses... Relocation, store closure and lease termination costs Interest expense..... Investment and other income... Provision for income taxes as a percentage of pretax income.. $15,389 9.973 5,416 $15.724 10,313 5,411 4,477 64 $ 351 $ 237 4,472 3796 Sales.... Cost of goods sold and occupancy costs............... Gross profit. ........... Selling, 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.... 857 861 2. Forecast the 2017 balance sheet for Whole Foods using the following forecast assumptions (S in millions) (41) 1975 878 3,442 3.163 827 320 710 507 $ 536 1.89 3.396 1.196 1.396 0.696 2.096 2.696 3.79 15.096 5.096 $6,341 Assets Current 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 accumulated depreciation 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 liabilities 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 capital lease obligations, less current installments. Deferred lease liabilities.. Other long-term liabilities..... Total liabilities.... Shareholders' equity Common stock, no par value, 1200 shares authorized: 377.0 and 377.1 shares issued: 318.3 and 348.9 shares outstanding at 2016 and 2015, respectively. ... Common stock in treasury, at cost, 58.7 and 28.2 shares at 2016 and 2015, respectively............ Accumulated other comprehensive loss....... Retained earnings ... Total shareholders' equity... Total liabilities and shareholders' equity........ Accounts receivable/Sales. Merchandise inventories/Sales .. Prepaid expenses and other current assets/Sales... Deferred income taxes (current assets)/Sales ... Deferred income taxes (noncurrent assetsy Sales ...... Accounts payable/Sales Accrued payroll, bonus and other benefits due team members/Sales ... Other current liabilities/Sales ..... Depreciation expense as a percentage of PPE, net, at start of the year. ....... CAPEX and development of new properties (all PPE) as a percentage of Sales Amortization of intangible assets.... Dividends payable as a percentage of dividends.. Long-term debt repayment due in 2017 .. Long-term debt repayment due in 2018 .. Increase in treasury stock in 2017 Dividends as percentage of net income.... $ 3 307 S6 25.096 $3 $65 $200 30.096 3. What does the forecasted adjustment to balance the accounting equation from part a reveal to us about the forecasted cash balance and related financing needs of the company? 3,117 2.933 (2.026) (32) 2349 3 224 $6,341 2,904 (1,124) (28) 2.017 3.769 $5,741