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.

Required: 1. What were the three largest "Adjustments to reconcile net income to net cash provided by operating activities"? Explain the direction of the effect of each in the reconciliation. 2. What have been Abercrombie & Fitch's major uses of cash over the past three years? What have been its major sources of cash for these activities? What are the company's plans for financing future expenditures? How did you know? 3. What was free cash flow for the year ended February 3, 2001? What does this imply about the company's financial flexibility?