1a). Forecast AutoZone's 2017 income statement and balance sheet using the following relations ($ in thousands). All percentages (other than sales growth and provision for income taxes) are based on percent of net sales.

1b). 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? Explain.

2. Refer to AutoZone financial information: Prepare a forecast of FY2017 statement of cash flows.

E12-21. Analyze, Forecast, and Interpret Income Statement and Balance Sheet Following are the income statements and balance sheets of AutoZone lac. AUTOZONE INC Consolidated Statements of Income 12 Months Ended Aug. 27, 2016 $10,635,676 5,026,940 5,608,736 3,548,341 2,060,395 147,681 1,912,714 671,707 $ thousands Cost of sales, including warehouse and delivery expenses. . . . . Gross profit. .. Operating profit . . Income before income taxes