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Abercrombie & Fitch Co. Consolidated Balance Sheets (Thousands. excent par value amounts) Abercrombie & Fitch Co. Consolidated Statements of Operations and Comprehensive (Loss) Income (Thousands,

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image text in transcribed Abercrombie \& Fitch Co. Consolidated Balance Sheets (Thousands. excent par value amounts) Abercrombie \& Fitch Co. Consolidated Statements of Operations and Comprehensive (Loss) Income (Thousands, except per share amounts) Abercrombie \& Fitch Co. Consolidated Statements of Stockholders' Equity (Thousands, except per share amounts) Abercrombie \& Fitch Co. Consolidated Statements of Cash Flows (Thousands) Fiscal 2022 Fiscal 2021 I ne accompanyng votes are an ntegra part or tnese consolaatea rnanca statements. Calculate the following for the year ended January 29, 2022, and January 28, 2023. A. i) Profit margin ii) Return on equity iii) Earnings per share (EPS) iv) Price-earnings ratio (Additional information: The The stock price of the company was $36.49 and $27.31 for the year ended January 29, 2022, and January 28, 2023, respectively) B. i) Receivables turnover ratio ii) Average collection period iii) Inventory turnover ratio iv) Average days in inventory v) Current ratio vi) Times interest earned ratio (Additional information: The balance of receivables on January 30,2021 , was $83,857,000. The balance of inventory on January 30,2021 , was $404,053,000.) A. Based on the calculation in part 1A, the profit margin dropped dramatically from the year ended January 29, 2022, to January 28, 2023. What does the drop imply, and what are the possible reasons for the decline? (25 marks) B. Based on the calculation in part 1B, the current ratio and times interest earned ratios have decreased from the year ended January 29, 2022, to January 28, 2023. What does the change imply, and what could be the possible reasons for the change? (25 marks) C. Overall, if you are the investor, would you invest in Abercrombie \& Fitch Co, given the information included in the Annual Report and external sources? Provide justification to support your answers. (10 marks)

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