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Prepare a forecasted statement of cash flows for 2017 using the indirect method. Assume the following: Operating expenses for 2017 (such as general and administrative)
Prepare a forecasted statement of cash flows for 2017 using the indirect method. Assume the following:
Operating expenses for 2017 (such as general and administrative) include depreciation and amortization expense of $522 million.
The company did not dispose of or write-down any long-term assets during the year.
The company paid dividends of $159 million in 2017
P11-47. Statement of Cash Flows (Indirect Method) Following are the income statement and balance sheet for Whole Foods Market Inc., for the year ended September 25, 2016, and a forecasted income statement and balance sheet for 2017. WHOLE FOODS MARKET INC. Income Statement $ millions 2016 Actual 2017 Est. Sales.. $15,724 10,313 5,411 4,477 $15,881 10,418 5,463 4,526 64 64 13 Cost of goods sold and occupancy costs.... Gross profit... Selling, general and administrative expenses ......... Pre-opening expenses. Relocation, store closure and lease termination costs .. Operating income...... Interest expense....... Investment and other income.... Income before income taxes Provision for income taxes. ... Net income . . . 857 (41) 11 827 320 $507 843 $531 WHOLE FOODS MARKET INC. Balance Sheet In millions 2016 Actual 2017 Est. $ 200 Assets Current assets Cash and cash equivalents... Short-term investments - available for sale secu Restricted cash Accounts receivable... Merchandise inventories.... .. Prepaid expenses and other current assets Deferred income taxes.... Total current assets............. Property and equipment, not of accumulated depreciation an Goodwill.. Intangible assets, net of accumulated amortization Deferred income taxes.... .. Other assets... Total assets... +++ $ 351 379 1222 242 517 167 197 1.975 175 206 108 3.720 710 710 100 $.91 $ 3 307 65 318 413 40 581 508 1.341 1.424 640 640 Liabilities and shareholders' Equity Current liabilities Current instaliments 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, 1,200 shares authorized: 377.0 shares issued 318 3 shares outstanding............. Common stock in treasury, at cost, 58.7 shares Accumulated other comprehensive loss Retained earnings . ... Total shareholders' equity ......... Total liabilities and shareholders' equity..... 3.117 3.135 2003 2.226 2.721 3,396 3.224 Required Prepare a forecasted statement of cash flows for 2017 using the indirect method. Assume the following: Operating expenses for 2017 (such as general and administrative include depreciation and amor tization expense of $522 million. The company did not dispose of or write down any long-term assets during the year. The company paid dividends of 3159 million in 2017 P11-47. Statement of Cash Flows (Indirect Method) Following are the income statement and balance sheet for Whole Foods Market Inc., for the year ended September 25, 2016, and a forecasted income statement and balance sheet for 2017. WHOLE FOODS MARKET INC. Income Statement $ millions 2016 Actual 2017 Est. Sales.. $15,724 10,313 5,411 4,477 $15,881 10,418 5,463 4,526 64 64 13 Cost of goods sold and occupancy costs.... Gross profit... Selling, general and administrative expenses ......... Pre-opening expenses. Relocation, store closure and lease termination costs .. Operating income...... Interest expense....... Investment and other income.... Income before income taxes Provision for income taxes. ... Net income . . . 857 (41) 11 827 320 $507 843 $531 WHOLE FOODS MARKET INC. Balance Sheet In millions 2016 Actual 2017 Est. $ 200 Assets Current assets Cash and cash equivalents... Short-term investments - available for sale secu Restricted cash Accounts receivable... Merchandise inventories.... .. Prepaid expenses and other current assets Deferred income taxes.... Total current assets............. Property and equipment, not of accumulated depreciation an Goodwill.. Intangible assets, net of accumulated amortization Deferred income taxes.... .. Other assets... Total assets... +++ $ 351 379 1222 242 517 167 197 1.975 175 206 108 3.720 710 710 100 $.91 $ 3 307 65 318 413 40 581 508 1.341 1.424 640 640 Liabilities and shareholders' Equity Current liabilities Current instaliments 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, 1,200 shares authorized: 377.0 shares issued 318 3 shares outstanding............. Common stock in treasury, at cost, 58.7 shares Accumulated other comprehensive loss Retained earnings . ... Total shareholders' equity ......... Total liabilities and shareholders' equity..... 3.117 3.135 2003 2.226 2.721 3,396 3.224 Required Prepare a forecasted statement of cash flows for 2017 using the indirect method. Assume the following: Operating expenses for 2017 (such as general and administrative include depreciation and amor tization expense of $522 million. The company did not dispose of or write down any long-term assets during the year. The company paid dividends of 3159 million in 2017Step by Step Solution
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