6. Assume the following are the fiscal year income statements and balance sheets of Abercrombie & Fitch. 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 2016 2015 $ 338,735 Balance Sheet ($ thousands) Assets Cash and equivalents Marketable securities Receivables Inventories Deferred income taxes Other current assets Total current assets Property and equipment, net Other assets Total assets Liabilities and shareholders' equity Accounts payable Outstanding checks Accrued expenses $ 50,687 411,167 41,855 362,536 29,654 51.185 947.084 813,603 29.031 $1,789.718 37,760 211,198 39,090 44.001 670.784 687,011 28.996 $1,386.791 $ $ 86,572 58,741 215,034 83,760 53,577 205,153 31,135 55,587 Deferred lease credits Income taxes payable Total current liabilities Deferred income taxes Deferred lease credits Other liabilities Total long-term liabilities 31,727 99,480 491,554 38,496 191,225 73.326 303,047 429,212 50,032 177,923 60.298 288,253 2016 2015 Balance Sheet-continued ($ thousands) Shareholders' equity Common stock Paid-in capital Retained earnings Accumulated other comprehensive Deferred compensation Treasury stock Total shareholders' equity Total liabilities and shareholders' equity 1,033 140,251 1,076,023 1,033 161,678 1,357,791 (796) 26,206 (550.795) 995,117 $1.789.718 15,048 (563,029) - 669,326 $1.386.791 Forecast its fiscal year 2017 income statement, its 2017 fiscal year-end balance sheet, and fiscal year 2017 statement of cash flows using the following relations (cost of goods sold can be inferred as sales minus gross profit: assume no change for all other accounts not listed). Net sales growth ... Gross profit margin...... Stores and distribution expense/Net sales. Marketing, general and administrative expense/Net sales Other operating income, net/Net sales Depreciation/Prior year property and equipment, net............. Provision for income taxes/Income before income taxes..... Interest income, net. Net sales/Year-end receivable Cost of goods sold/Year-end inventories. Cost of goods sold/Year-end payable. Net sales/Year-end property and equipment, net.. Net sales/Year-end accrued expenses.... Income taxes payable/Provision for income taxes. ....... Dividends. 37.8% 66.5% 35.9% 11.3% -0.2% 18.1% 39.2% no change 66.53 2.57 10.78 3.42 12.95 46.2% $52,218 What is the forecasted 2017 net cash flow from operating activities? What is the forecasted 2017 net cash flow from operating activities? a. $146,780,000 b. $455,686,000 c. $603,997,000 d. $ 52,218,000
