Front Porch Furniture Reference: G 3 Planning Materiality Financial Information Prepared by: Year Ended: January 28, 2016 Date: Reviewed by: 1/28/2016 1/29/2015 All amounts are in thousands Projected Actual Net sales $ 1,355,400 $ 1,243,788 Cost of sales 599,700 562,427 Gross margin 755,700 681,361 Selling, general and administrative expenses 659,800 627,622 Maintenance expense 0 3,856 Operating income/(loss) 95,900 49,883 Interest income 700 636 Interest expense 1,200 1,009 Income/(loss) before income taxes 95,400 49,510 Income tax provision (benefit) 36,900 18,408 Net income/(loss) $ 58,500 $ 31,102 Assets* Current assets Cash and cash equivalents $ 146,612 $ 138,194 Accounts receivable 12, 101 12,670 Merchandise inventories 115,832 1 11,229 Refundable income taxes 1,957 16,394 Deferred income taxes 19,492 23,542 Prepaid expenses and other current assets 31,664 29,995 Total current assets 327,658 332,024 Property and equipment, net 229, 778 240,641 Deferred financing costs, net 560 640 Deferred income taxes 21,639 15,574 Other assets 2,630 4,376 Total assets $ 582,265 $ 593,255 Liabilities and Stockholders' Equity* Current liabilities Accounts payable $ 77,275 $ 50,615 Accrued salaries and bonus 25,356 21,154 Accrued rent payable 34,444 29,512 33 904 31 273