1.) Forecast AutoZones 2017 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 which is $11,273,817 for 2018.

CAPEX for 2017 will be 4.6% of 2017 Net sales and depreciation will be 8.3% of Property and equipment, net at the start of the fiscal year, which was $3,733,254 thousand.

Goodwill, Deferred income taxes, Other long-term liabilities, AOCI, and Treasury stock will not change during the year.

Other long-term assets include intangible assets. The 10-K reports that the 2017 amortization expense for intangibles will be $8,482 thousand.

Long-term debt will decrease by $1,597,500 in 2017, per the 10-K.

The company will continue its stock repurchases. Assume that during 2017, AutoZone will repurchase 1 million shares at an average price of $750 per share. The company will retire these shares and reduce Common Stock by the par value ($0.01 per share). Assume that these shares were originally issued at an average price of $35 per share.

The company does not pay dividends.

b. 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.

AUTOZONE INc Consolidated Balance Sheet In thousands, except par value Aug. 27, 2016 Current assets Cash and cash equivalents Accounts receivable. 189,734 . 287,680 3,631,916 130,243 Merchandise inventories Other current assets. Total current assets 4,239,573 3,733,254 391,887 . 36,855 198,218 Property and equipment, net Goodwill Deferred income taxes Other long-term assets Total assets. $8,599,787 Current liabilities Accounts payable. Accrued expenses and other Income taxes payable $4,095,854 551,625 42,841 Total current liabilities.. 4,690,320 4,924,119 . 284,500 488,386 Long-term debt... Deferred income taxes Other long-term liabilities Stockholders' deficit Preferred stock, authorized 1,000 shares; no shares issued Common stock, par value $0.01 per share, authorized 200,000 shares 30,329 shares issued and 29,118 shares outstanding in 2016 and 32,098 shares issued and 30,659 shares outstanding in 2015 Additional paid-in capital. Retained deficit. .. Accumulated other comprehensive loss Treasury stock, at cost. 303 1,054,647 (1,602,186) (307,529) (932,773) Total stockholders' deficit. (1,787,538) Liabilities and stockholders' deficit . $8,599,787 Net sales growth. .. Cost of sales, including warehouse and delivery expenses Operating, selling, general and administrative expenses Interest expense, net... . . . Income tax expense (6 pretax income) Accounts receivable. .. 696 47.3% 33.4% $145,000 35% 2.7% Merchandise inventories 34.19% Other current assets.. Accounts payable. Accrued expenses and other Income taxes payable 1.2% 38.5% 5.2% 0.4% AUTOZONE INc Consolidated Balance Sheet In thousands, except par value Aug. 27, 2016 Current assets Cash and cash equivalents Accounts receivable. 189,734 . 287,680 3,631,916 130,243 Merchandise inventories Other current assets. Total current assets 4,239,573 3,733,254 391,887 . 36,855 198,218 Property and equipment, net Goodwill Deferred income taxes Other long-term assets Total assets. $8,599,787 Current liabilities Accounts payable. Accrued expenses and other Income taxes payable $4,095,854 551,625 42,841 Total current liabilities.. 4,690,320 4,924,119 . 284,500 488,386 Long-term debt... Deferred income taxes Other long-term liabilities Stockholders' deficit Preferred stock, authorized 1,000 shares; no shares issued Common stock, par value $0.01 per share, authorized 200,000 shares 30,329 shares issued and 29,118 shares outstanding in 2016 and 32,098 shares issued and 30,659 shares outstanding in 2015 Additional paid-in capital. Retained deficit. .. Accumulated other comprehensive loss Treasury stock, at cost. 303 1,054,647 (1,602,186) (307,529) (932,773) Total stockholders' deficit. (1,787,538) Liabilities and stockholders' deficit . $8,599,787 Net sales growth. .. Cost of sales, including warehouse and delivery expenses Operating, selling, general and administrative expenses Interest expense, net... . . . Income tax expense (6 pretax income) Accounts receivable. .. 696 47.3% 33.4% $145,000 35% 2.7% Merchandise inventories 34.19% Other current assets.. Accounts payable. Accrued expenses and other Income taxes payable 1.2% 38.5% 5.2% 0.4%