Following are the income statements and balance sheets of Abercrombie \& Fitch.

a. Forecast Abercrombie \& Fitch's 2009 income statement and balance sheet using the following relations; assume no change for all other accounts not listed here. Assume all capital expenditures are purchases of property and equipment.

b. What does the forecasted cash balance from part \(a\) reveal to us about the forecasted financing needs of the company? Explain.

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Consolidated Statements of Net Income For Fiscal Years Ended (Thousands) 2008 2007 Net sales..... $3,749,847 $3,318,158 2006 $2,784,711 Cost of goods sold. 1,238,480 1,109,152 933,295 Gross profit.... 2,511,367 2,209,006 1,851,416 Stores and distribution expense.. 1,386,846 1,187,071 1,000,755 Marketing, general and administrative expense. 395,758 373,828 313,457 Other operating income, net (11,734) (9,983) (5,534) Operating income.. 740,497 658,090 542,738 Interest income, net (18,828) (13,896) (6,674) Income before income taxes. 759,325 671,986 549,412 Provision for income taxes. 283,628 249,800 215,426 Net income....... $ 475,697 $ 422,186 $ 333,986