Question
Please explain how the net sales is calculated I dont understand where the number comes from-thank you! Forecasting an Income Statement Abercrombie & Fitch reports
Please explain how the net sales is calculated I dont understand where the number comes from-thank you!
Forecasting an Income Statement Abercrombie & Fitch reports the following income statements.
Income Statement, For Fiscal Years Ended ($ thousands) | Jan. 29, 2011 | Jan. 30, 2010 | Jan. 31, 2009 |
---|---|---|---|
Net sales | $ 3,468,777 | $ 2,928,626 | $ 3,484,058 |
Cost of goods sold | 1,256,596 | 1,045,028 | 1,152,963 |
Gross profit | 2,212,181 | 1,883,598 | 2,331,095 |
Stores and distribution expense | 1,589,501 | 1,425,950 | 1,436,363 |
Marketing, general and administrative expense | 400,804 | 353,269 | 405,248 |
Other operating income, net | (10,056) | (13,533) | (8,778) |
Operating income | 231,932 | 117,912 | 498,262 |
Interest expense (income), net | 3,362 | (1,598) | (11,382) |
Income from continuing operations before taxes | 228,570 | 119,510 | 509,644 |
Tax expense from continuing operations | 78,287 | 40,557 | 201,475 |
Net income from continuing operations | 150,283 | 78,953 | 308,169 |
Loss from discontinued operations, net of tax | -- | (78,699) | (35,914) |
Net income | $ 150,283 | $ 254 | $ 272,255 |
Forecast Abercrombie & Fitch's fiscal 2012 income statement assuming the following income statement relations. All percentages, other than sales growth and provision for income taxes, are based on percent of net sales.
Net Sales growth | 10% |
Cost of Goods Sold/Net sales | 36% |
Stores and distribution expense/Net sales | 46% |
Marketing, general and adminstrative expense/Net sales | 12% |
Other operating income, net | 10,056 |
Interest Expense (Income),net | 3,362 |
Tax expense from continuing operations (% of pretax income) | 34 % |
Net loss from discontinued operations (net of taxes) | 0 |
Instructions: Round answers to the nearest whole number. Do not use negative signs with your answers. Remember to use rounded forecasted net sales with subsequent calculations.
Forecasted Income Statement, For Fiscal Years Ended ($ thousands) | 2011 | 2012 |
---|---|---|
Net sales | $3,468,777 | $Answer |
Cost of goods sold | 1,256,596 | Answer |
Gross profit | 2,212,181 | Answer |
Stores and distribution expense | 1,589,501 | Answer |
Marketing, general and administrative expense | 400,804 | Answer |
Other operating income, net | 10,056 | Answer |
Operating income | 231,932 | Answer |
Interest expense (income), net | 3,362 | Answer |
Income from continuing operations before taxes | 228,570 | Answer |
Tax expense from continuing operations | 78,287 | Answer |
Net income from continuing operations | 150,283 | Answer |
Net loss from discontinued operations (net of tax) | 0 | Answer |
Net Income | $ 150,283 | Answer
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