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1. Assume Abercrombie & Fitch reports the following fiscal year income statement. Income Statement ($ thousands) Sales Cost of goods sold Gross profit Stores and
1. Assume Abercrombie & Fitch reports the following fiscal year income statement. Income Statement ($ thousands) Sales Cost of goods sold Gross profit Stores and distribution expense Marketing, general and administrative expense Other operating income, net Operating income Interest income, net Income before income taxes Provision for income taxes Net income 2016 $2,784,711 933,295 1,851,416 1,000,755 313,457 (5,534) 542,738 (6.674) 549,412 215,426 $ 333,986 Forecast Abercrombie & Fitch's 2017 income statement assuming the following income statement relations ($ 000s); cost of goods sold can be inferred as sales minus gross profit, and assume no change for all other accounts not listed below. Net sales growth Gross profit margin Stores and distribution expenses/Net sales Marketing, general and administrative expense/Net sales Other operating income, net/Net sales Provision for income taxes/Income before income taxes Interest income, net 37.8% 66.5% 35.9% 11.3% -0.2% 39.2% No change What is the forecasted net income for 2017? a. $3,837,332,000 b. $333,986,000 c. $126,246,000 d. $459,012,000
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