Forecasting an Income Statement Assume Abercrombie & Fitch reports the following

Question

Forecasting an Income Statement
Assume Abercrombie & Fitch reports the following income statements.

Forecast Abercrombie & Fitch's 2012 income statement assuming the following income statement relations. Assume no change for all other accounts not listed below. All percentages, other than sales growth and provision for income taxes, are based on percent of net sales. (Round your answers to the nearest whole number.)

Round your answers to the nearest whole number.

Do not use negative signs with your answers.  

Income Statement, For Fiscal Years Ended ($ thousands) 2011 2010 Net sales $ 3,749,847 $ 3,318,158 Cost of goods sold 1,238,480 1,109,152 Gross profit 2,511,367 2,209,006 Stores and distribution expense 1,386,846 1,187,071 Marketing, general and administrative expense 395,758 373,828 Other operating (income), net (11,734) (9,983) Operating income 740,497 658,090 Interest income, net (18,408) (13,896) Income before income taxes 758,905 671,986 Provision for income taxes 283,628 249,800 Net income $ 475,277 $ 422,186

Explanation / Answer

Dear Student Thankyou for using chegg Forcasted Income Statement For Fiscal Year Ended($thousands) Forecasted Income Statement, For Fiscal Years Ended ($ thousands) 2011 2012 Net sales                        37,49,847                        42,37,327 Cost of goods sold                        12,38,480                        13,98,318 Gross profit                        25,11,367                        28,39,009 Stores and distribution expense                        13,86,846                        15,67,811 Marketing, general and administrative expense                          3,95,758                          4,49,157 Other operating (income), net                            -11,734                            -12,712 Operating income                          7,40,497                          8,34,753 Interest income, net                            -18,408                            -18,408 Income before income taxes                          7,58,905                          8,53,161 Provision for income taxes                          2,83,628                          3,19,082 Net Income                          4,75,277                          5,34,079 Comment: Please interpret the negative sign as bracket because my system is not supporting bracket symbol.

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