In the context of using financial statements to assess the amount, timing and uncertainty of a firm's future cash flows, the next logical step after choosing an appropriate analysis structure is to forecast future performance. In fact, forecasting is essential in this respect. The idea of classifying financial statement line items based on their persistent vs. transitory nature becomes crucial for this stage of analysis. Let's begin our discussion on this point.

1. Can you identify potential financial statement adjustments related to U.S. GAAP that might affect our forecasts for gross profit margin and operating expense margins, and discuss how they might impact the forecasts?