Refer to the Abercrombie & Fitch Co. financial information in Exercise 11-18. Prepare a forecast of fiscal 2014 statement of cash flows.

Q11-18

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

a. Forecast Abercrombie & Fitch's fiscal 2014 income statement and balance sheet using the following relations (S in thousands). Assume all capital expenditures are purchases of property and equipment.

b. What does the forecasted adjustment to balance the accounting equation from part a reveal to us about the forecasted financing needs of the company? Explain.

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Income Statement, For Fiscal Years Ended ($ thousands) Net sales....... Cost of goods sold. Gross profit... Stores and distribution expense. Marketing, general and administrative expense. Other operating expense (income), net Operating income... Interest expense, net Income from continuing operations before taxes. Tax expense from continuing operations.. Net income from continuing operations... Income from discontinued operations, net of tax Net income.... February 2, 2013 $4,510,805 1,694,096 374,233 7,288 366,945 129,934 237,011 - January 28, 2012 2,816,709 2,550,224 2,217,429 1,987,926 1,888,248 1,589,501 473,883 437,120 400,804 (19,333) 3,472 (10,056) $ 237,011 $4,158,058 1,607,834 796 221,384 3,577 217,807 74,669 143,138 January 29, 2011 $ 143,934 $3,468,777 1,251,348 237,180 3,362 233,818 78,109 155,709 $ 155,709