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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 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 8.0% 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 $6,854 Provision for income taxes/Pretax income 40.3%
Whole Foods Market, Inc. Income Statement, For Years Ended ($ 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 ?
Answer & Explanation
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