Abercrombie & Fitch reports the following fiscal year income statements. Forecast Abercrombie & Fitch's 2007 income statement
Question:
Abercrombie & Fitch reports the following fiscal year income statements. Forecast Abercrombie & Fitch's 2007 income statement assuming the following income statement relations ($ 000s); cost of goods sold can be inferred as sales minus gross profit, and assume no change for all other accounts not listed below.
Net sales growth 37.8%
Gross profit margin 66.5%
Stores and distribution expenses/Net sales 35.9%
Marketing, general and administrative expense/Net sales 11.3%
Other operating income, net/Net sales -0.2%
Provision for income taxes/Income before income taxes 39.2%
Interest income, net no change
What is the forecasted net income for 2007? Select one:
A. $3,837,332,000
B. $333,986,000
C. $126,246,000
D. $459,012,000
Fundamentals of Financial Accounting
ISBN: 978-0078025914
5th edition
Authors: Fred Phillips, Robert Libby, Patricia Libby