Abercrombie & Fitch (www.abercrombie.com)isaspecialty retailer selling casual sportswear, personal care products, and men’s and women’s accessories. As of February 2, 2008, the company operated 1,035 stores in the United States, Canada, and the United Kingdom. In its 2007 10-K ﬁling to the SEC, A & F reported net income of $475,697,000 on revenues of nearly $3,749,847,000.
(a) Indicate what objective or objectives the following decision makers would likely have in mind when reviewing the ﬁnancial statements of Abercrombie & Fitch.
(1) Potential investors in the company’s common stock
(2) An individual applying for a management position with the company
(3) A banker reviewing a loan application submitted by the firm
(4) Businesses that supply goods or services to the Company\
(b) Identify information sources that the parties listed in part (a) could use to analyze the ﬁnancial statement data of Abercrombie & Fitch.