This case is both a financial statement analysis and intro to financial forecasting case involving an automotive tire retail distributor. Your case assignment will be to act as Jack Martin, the Chief Financial Officer of Tire City Inc. As the CFO, you need to request a loan from the company's bank in order to finance an expansion effort. In order to make an appropriate pitch to the bank, you will need to consider the below 4 questions: 1. Evaluate your company's historic financial health. How well is your company performing? 2. Based on the sales predictions for 1996 of $28,206,000 and for 1997 of $33,847,000 (and relying on other assumptions provided in the case), prepare complete pro forma forecasts for the 1996 and 1997 income statement and year-end balance sheets. a. As a preliminary assumption, assume any new financing required will be in the form of bank debt (i.e., no additional shares of equity can be issued). b. Assume all debt (i.e., existing debt and any new bank debt) bears interest at the same rate of 10%. 3. Evaluate and determine the level of borrowing needs that your company will need from the bank in order to finance the warehouse expansion. What evidence can you point the bank towards that the funds needed to expand your warehouse facilities and finance your growth will be worthwhile? 4. Finally, using your set of pro forma forecasts, assess the future financial health of your company as of the end of 1997. Will your company be in a stronger or weaker financ