Following are the income statements and balance sheets of AutoZone Inc. mm Consolided Slatemerls of hoome $thouaands,emepttorparvalue Aug.27, 2016 Current assets Cash and cash equivalent $ 189,734 Accounts receivable $ lm) Merchandise inventories $ 3,631,916 Other current assets $ 130,243 Total currentassets W Property and equipment, net $ 3,733,254 Goodwill $ 391W Deferred income taxes $ 36,855 Other long-term assets $ 198,218 Total assets 8.599.787 Current liabilities Accounts payable $ 4,095,854 Aocnled expenses and other $ 551,625 Income taxes payable $ 42,841 Total current liabilities $ 4,690,320 Long-ten'n debt $ 4,924,119 Deferred income taxes $ 284,50) Other long-term liabilities $ 488,386 Stockholders' deficit Preferred stock, authorized 1,000 shares; no shares issued Common stock, par value $0.01 per share, aulhorized 200,000 shares; 30,329 share issued and 29,1183haresmlslandng in 2016 and32,098 shares issued and 30,659 shares outstand'ng in 2015 $ 313 Additional paid-in capital $ 1,054,647 Retained deficit $(1 602,186) Accumulated other comprehensive loss $ (307,529) Treasury stock, at cost $ (932,773) Total stockholders' deficit $(1,787,538) Liabilities and stockholders' decit $ 8,599,787 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. (20%) Net Sales growth 6% Cost of sales, including warehouse and delivery expenses 47.30% Operating, selling, general and administrative expenses 33.40% Interest expense, net $145,000 Income tax expense (% pretax income) 35% Accounts receivable 2.70% Merchandise inventories 34.10% Other current assets 1.20% Accounts payable 38.50% Accrued expenses and other 5.20% Income taxes payable 0.40% 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 including 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
