Refer to the financial statements of Abercrombie & Fitch given in Appendix C at the end of this book, or open file ANF.pdf in the Annual Report Cases directory on the student CD-ROM. At the bottom of each statement, the company warns readers to "see accompanying notes." The following questions illustrate the types of information that you can find in the financial statements and accompanying notes.

(Hint: Use the notes.)

Required: 1. What items were included as noncurrent assets on the balance sheet? 2. How much land did the company own at the end of the current year? 3. What portion of accrued expenses were "Rent and landlord charges" during the current year? 4. At what point were catalogue and e-commerce sales recognized as revenue? 5. The company reported cash flows from operating activities of S 1 5 1 . 1 89,000. However, its cash and cash equivalents decreased for the year. Explain how that happened. 6. What was the highest stock price for the company during the current year? 7. Did the company's ROE increase or decrease in the current year? How would you expect this to be reflected in the company's share price? Abercrombie & Fitch's shareholders' equity balance was SI 86. 105 at the end of the 1998 fiscal year.