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Topics: Balance sheet, Generally Accepted Accounting Principles, Asset Pages: 3 (361 words) Published: October 4, 2014
E11-26 (40 minutes)
a.
($000s)

Whole Foods Forecasted Income Statement
2010
Assumptions
1.10

2011 Est.

Sales......................................... $ 9,005,794

9,005,794 x

$ 9,906,373

Cost of goods sold and
occupancy costs .....................

5,870,393

9,906,373 x 65.2%

Gross profit .............................

3,135,401

Direct store expenses ............

2,375,716

General and administrative
expenses..................................

272,449

9,906,373 x

3.0%

297,191

Pre-opening expenses ...........

38,044

9,906,373 x

0.4%

39,625

Relocation, store closure
and lease termination costs ..

11,217

0

Operating income ...................

437,975

495,320

Interest expense......................

(33,048)

(33,048)

Investment and other
income .....................................

6,854

6,854

Income before income taxes .

411,781

469,126

Provision for income taxes ....

165,948

Net income............................... $

245,833

6,458,955
3,447,418

9,906,373 x 26.4%

2,615,282

469,126 x 40.3%

189,058
$

280,068

E11-26 (continued)
Whole Foods Forecasted Balance Sheet
($000s)
2010
Assumptions
Cash and cash equivalents .... $
131,996
9,906,373 x
1.5%
Short-term investments .........
329,738
plug
Restricted cash ........................
86,802
Accounts receivable................
133,346
9,906,373 x
1.5%
Merchandise inventories ........
323,487
9,906,373 x
3.6%
Prepaid expenses and other...
54,686
9,906,373 x
0.6%
Deferred income taxes ............
101,464
Total current assets ................
1,161,519
Property and equipment, net ..
1,886,130 +
254,628 - 273,489
Long-term investments ..........
96,146
Goodwill ...................................
665,224
Intangible assets, net .............
69,064
Deferred income taxes ............
99,156
Other assets .............................
9,301...
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