Forecasting an Income Statement Assume Abercrombie & Fitch reports

Forecasting an Income Statement
Assume Abercrombie & Fitch reports the following income statements.

Income Statement, For Fiscal Years Ended ($ thousands)

Feb. 2, 2013

Jan. 28, 2012

Jan, 29, 2011

Net sales

$ 4,510,805

$ 4,158,058

$ 3,468,777

Cost of goods sold

1,694,096

1,607,834

1,251,348

Gross profit

2,816,709

2,550,224

2,217,429

Stores and distribution expense

1,987,926

1,888,248

1,589,501

Marketing, general and administrative expense

473,883

437,120

400,804

Other operating expense (income), net

(19,333)

3,472

(10,056)

Operating income

374,233

221,384

237,180

Interest expense, net

7,288

3,577

3,362

Income from continuing operations before taxes

366,945

217,807

233,818

Tax expense from continuing operations

129,934

74,669

78,109

Net income from continuing operations

237,011

143,138

155,709

Income from discontinued operations, net of tax

--

796

--

Net income

$ 237,011

$ 143,934

$ 155,709

Forecast Abercrombie & Fitch’s fiscal 2014 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

1.10

Cost of goods sold/Net sales

37%

Stores and distribution expense/Net sales

44%

Marketing, general and administrative expense/Net sales

11%

Other operating income, net

$(19,333)

Interest expense (income), net

$7,288

Tax expense from continuing operations (% of pretax income)

35%

Net loss from discontinued operations (net of taxes)

0

Instructions: Round answers to the nearest whole number. Do not use negative signs with your answers. Remember to use rounded forecasted net sales with subsequent calculations.

Forecasted Income Statement, For Fiscal Years Ended ($ thousands)

2013

2014 Est.

Net sales

$ 4,510,805

$Answer

Cost of goods sold

1,694,096

Answer

Gross profit

2,816,709

Answer

Stores and distribution expense

1,987,926

Answer

Marketing, general and administrative expense

473,883

Answer

Other operating income, net

19,333

Answer

Operating income

374,233

Answer

Interest expense, net

7,288

Answer

Income from continuing operations before taxes

366,945

Answer

Tax expense from continuing operations

129,934

Answer

Incorrect
0.00 points out of 1.00

Net income from continuing operations

237,011

Answer

Income from discontinued operations, net of tax

--

Answer

Net income

$ 237,011

$ Answer

Incorrect
0.00 points out of 1.00

 

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    • Posted: 4 years ago
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