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Forecasting an Income Statement AutoZone Inc. reports the following income statements. Consolidated Statement of Income ($ in Thousands) 12 Months Ended Aug. 27, 2016 Net
Forecasting an Income Statement AutoZone Inc. reports the following income statements.
Consolidated Statement of Income ($ in Thousands) | 12 Months Ended Aug. 27, 2016 | |
---|---|---|
Net sales | $10,635,676 | |
Cost of sales, including warehouse and delivery expenses | 5,026,940 | |
Gross profit | 5,608,736 | |
Operating, selling, general and administrative expenses | 3,548,341 | |
Operating profit | 2,060,395 | |
Interest expense, net | 147,681 | |
Income before income taxes | 1,912,714 | |
Income tax expense | 671,707 | |
Net income | $1,241,007 |
Forecast AutoZone's 2017 income statement assuming the following income statement relations ($ in thousands). All percentages, (other than sales growth and provision for income taxes) are based on percent of net sales.
Net sales growth | 6% |
Cost of sales, including warehouse and delivery expenses | 47.3% |
Operating, selling, general and administrative expenses | 33.4% |
Interest expense, net | $145,000 |
Income tax expense (% pretax income) | 35% |
Round your answers to the nearest whole number.
Do not use negative signs with your answers.
Forecasted Income Statement | |||
---|---|---|---|
($ thousands) | 2016 | 2017 Est. | |
Net sales | $10,635,676 |
| |
Cost of goods sold | 5,026,940 |
| |
Gross profit | 5,608,736 |
| |
Operating, selling, general, and admin expenses | 3,548,341 |
| |
Operating profit | 2,060,395 |
| |
Interest expense, net | (147,681) |
| |
Income before income taxes | 1,912,714 |
| |
Income tax expense | 671,707 |
| |
Net income | $ 1,241,007 |
|
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