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Forecasting an Income Statement Assume Abercrombie & Fitch reports the following income statements. Income Statement, For Fiscal Years Ended ($ thousands) 2011 2010 Net sales

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

Income Statement, For Fiscal Years Ended ($ thousands) 2011 2010
Net sales $ 3,749,847 $ 3,318,158
Cost of goods sold 1,238,480 1,109,152
Gross profit 2,511,367 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 740,497 658,090
Interest income, net (18,408) (13,896)
Income before income taxes 758,905 671,986
Provision for income taxes 283,628 249,800
Net income $ 475,277 $ 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. (Round your answers to the nearest whole number.)

Net sales growth 13.0%
Gross profit margin 67.0%
Stores and distribution expense/Net sales 37.0%
Marketing, general and adminstrative expense/Net sales 10.6%
Other operating (income), net/Net sales -0.3%
Provision for income taxes/Income before income taxes 37.4%

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 $3,749,847 $Answer
Cost of goods sold 1,238,480 Answer
Gross profit 2,511,367 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 740,497 Answer
Interest income, net (18,408) Answer
Income before income taxes 758,905 Answer
Provision for income taxes 283,628 Answer
Net Income $ 475,277 $ Answer

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