Forecasting an Income Statement Assume Abercrombie & Fitch reports the following income statements.

Income Statement, For Fiscal Years Ended ($ thousands)	2011	2010
Net sales	$ 3,769,847	$ 3,318,158
Cost of goods sold	1,238,480	1,109,152
Gross profit	2,531,367	2,209,006
Stores and distribution expense	1,386,846	1,187,071
Marketing, general and administrative expense	395,758	373,828
Other operating income, net	11,734	9,983
Operating income	760,497	658,090
Interest income, net	19,188)	13,896
Income before income taxes	779,685	671,986
Provision for income taxes	283,628	249,800
Net income	$ 496,057	$ 422,186

Forecast Abercrombie & Fitch's 2012 income statement assuming the following income statement relations. Assume no change for all other accounts not listed below. All percentages, other than sales growth and provision for income taxes, are based on percent of net sales.

Net sales growth	13.6%
Gross profit margin	67.1%
Stores and distribution expense/Net sales	36.8%
Marketing, general and administrative expense/Net sales	10.5%
Other operating income, net/Net sales	0.3%
Provision for income taxes/Income before income taxes	36.4%

• Round your answers to the nearest whole number.

• Do not use negative signs with your answers.

Forecasted Income Statement, For Fiscal Years Ended ($ thousands)	2011	2012
Net sales	$3,769,847	Answer
Cost of goods sold	1,238,480	Answer
Gross profit	2,531,367	Answer
Stores and distribution expense	1,386,846	Answer
Marketing, general and administrative expense	395,758	Answer
Other operating (income), net	11,734	Answer
Operating income	760,497	Answer
Interest income, net	19,188	Answer
Income before income taxes	779,685	Answer
Provision for income taxes	283,628	Answer
Net Income	$ 496,057	Answer