In this assignment we are re-creating the journal entries that resulted in the financial statement information presented. Using the information from the Balance Sheet and Income Statement of Abercrombie & Fitch for the most current year, complete the following: 1. Assume that net sales were 40% cash sales, 50% on account, and 10% were from prepaid sales Make one compound journal entry to record net sales for the year ended February 3, 2018 (3 points). Accounts Debit Credit 2. Using the ending inventory balances from 1/28/17 and 2/3/18 and the cost of goods sold for the year ended 2/3/18, compute how much inventory Abercrombie must have purchased during the year. You may want to review the periodic inventory system in the box labeled "Additional Consideration" in Chapter 2. Show computations. (3 points) 3. Assume that 80% of Stores and Distribution Expense was paid in cash and the remaining amount was charged to accrued liabilities. Journalize this activity for the 2017 fiscal year ended 2/3/2018 (2 Date Accounts Debit Credit 4. Assume that no treasury stock was reissued during the year ended 2/3/2018. Journalize the purchase of the treasury stock (2 points) Date Accounts Debit Credit ABERCROMBIE & FITCH CO CONSOLIDATED BALANCE SHEETS (Thousands, except par value amounts) February 3, 2018 January 28, 2017 Assets Current assets Cash and equivalents Receivables Inventories Other current assets $ 675,558 $ 547,189 93,384 399,795 98,932 1,264,538 1,139,300 824,738 331,719 $2,325,692 $ 2,295,757 79,724 424,393 84,863 Total current assets Property and equipment, net Other assets Total assets 738,182 322,972 Current liabilities Accounts payable Accrued expenses Short-term portion of deferred lease credits Income taxes payable $168,868 $ 187,017 273,044 20,076 5,863 486,000 308,601 19,751 10,326 507,546 Total current liabilities Long-term liabilities Long-term portion of deferred lease credits Long-term portion of borrowings, net Leasehold financing obligations Other liabilities 75,648 249,686 50,653 189,688 565,675 76,321 262,992 46,397 172,008 557,718 Total long-term liabilities Stockholders' equity Class A Common Stock $0.01 par value: 150,000 shares authorized and 103,300 shares issued at each of February 3, 2018 and January 28, 2017 Paid-in capital Retained earnings Accumulated other comprehensive loss, net of tax 1,033 396,590 2,420,552 2,474,703 1,033 406,351 (95,054) (121,302) Treasury stock, at average cost: 35,105 and 35,542 shares at February 3, 2018 and January 28, 2017, respectively (1,490,503) (1.507.589) 1,242,379 1,243,435 Total Abercrombie & Fitch Co. stockholders' equity 8,604 1,252,4711,252,039 2,325.692 $2.295.757 10,092 Noncontrolling interests Total stockholders' equity Total liabilities and stockholders' equity The accompanying Notes are an integral part of these Consolidated Financial Statements ABERCROMBIE & FITCH CO CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (Thousands, except per share amounts) Fiscal 2017 Fiscal 2016 Fiscal 2015 Net sales Cost of sales, exclusive of depreciation and amortization Gross profit Stores and distribution expense Marketing, general and administrative expense 471,914 453,202 470,321 Restructuring benefit Asset impairment Other operating income, net Operating income Interest expense, net Income (loss) before taxes Income tax expense (benefit) Net income Less: Net income attributable to non-controlling $3,492,690 $3,326,740 $3,518,680 1,408,848 1,298,172 1,361,137 2,083,842 2,028,568 2,157,543 1,542,425 1,578,460 1,604,214 14,391 (16,938) (26,212) 72,050 16,889 55,161 44,636 10,525 (1,598) 18,209 (6,441) 72,838 18,248 (3,478) 54,590 16,031 38,559 7,930 15,188 18,666 (11,196) 7,718 interests 3,431 $ 7,094 $3,956 35,576 3,762 2,983 Net income attributable to A&F Net income per share attributable to A&F 0.10 $ 0.100.06 Basic 0.06 $ 0.52 0.51 Diluted S Weighted-average shares outstanding Basic 68,391 69,403 67,878 68,284 68,880 69,417 Diluted