Forecasting an Income Statement Assume Abercrombie & Fitch reports

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

Income Statement, For Fiscal Years Ended ($ thousands)	Feb. 2, 2013	Jan. 28, 2012	Jan, 29, 2011
Net sales	$ 4,510,805	$ 4,158,058	$ 3,468,777
Cost of goods sold	1,694,096	1,607,834	1,251,348
Gross profit	2,816,709	2,550,224	2,217,429
Stores and distribution expense	1,987,926	1,888,248	1,589,501
Marketing, general and administrative expense	473,883	437,120	400,804
Other operating expense (income), net	(19,333)	3,472	(10,056)
Operating income	374,233	221,384	237,180
Interest expense, net	7,288	3,577	3,362
Income from continuing operations before taxes	366,945	217,807	233,818
Tax expense from continuing operations	129,934	74,669	78,109
Net income from continuing operations	237,011	143,138	155,709
Income from discontinued operations, net of tax	--	796	--
Net income	$ 237,011	$ 143,934	$ 155,709

Forecast Abercrombie & Fitch’s fiscal 2014 income statement assuming the following income statement relations ($ in thousands). All percentages, other than sales growth and provision for income taxes, are based on percent of net sales.

Net sales growth	1.10
Cost of goods sold/Net sales	37%
Stores and distribution expense/Net sales	44%
Marketing, general and administrative expense/Net sales	11%
Other operating income, net	$(19,333)
Interest expense (income), net	$7,288
Tax expense from continuing operations (% of pretax income)	35%
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)	2013	2014 Est.
Net sales	$ 4,510,805	$Answer
Cost of goods sold	1,694,096	Answer
Gross profit	2,816,709	Answer
Stores and distribution expense	1,987,926	Answer
Marketing, general and administrative expense	473,883	Answer
Other operating income, net	19,333	Answer
Operating income	374,233	Answer
Interest expense, net	7,288	Answer
Income from continuing operations before taxes	366,945	Answer
Tax expense from continuing operations	129,934	Answer Incorrect 0.00 points out of 1.00
Net income from continuing operations	237,011	Answer
Income from discontinued operations, net of tax	--	Answer
Net income	$ 237,011	$ Answer Incorrect 0.00 points out of 1.00

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