Please explain how the net sales is calculated I dont understand where the number comes...
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Please explain how the net sales is calculated I dont understand where the number comes from-thank you!
Forecasting an Income Statement Abercrombie & Fitch reports the following income statements.
Income Statement, For Fiscal Years Ended ($ thousands)
Jan. 29, 2011
Jan. 30, 2010
Jan. 31, 2009
Net sales
$ 3,468,777
$ 2,928,626
$ 3,484,058
Cost of goods sold
1,256,596
1,045,028
1,152,963
Gross profit
2,212,181
1,883,598
2,331,095
Stores and distribution expense
1,589,501
1,425,950
1,436,363
Marketing, general and administrative expense
400,804
353,269
405,248
Other operating income, net
(10,056)
(13,533)
(8,778)
Operating income
231,932
117,912
498,262
Interest expense (income), net
3,362
(1,598)
(11,382)
Income from continuing operations before taxes
228,570
119,510
509,644
Tax expense from continuing operations
78,287
40,557
201,475
Net income from continuing operations
150,283
78,953
308,169
Loss from discontinued operations, net of tax
--
(78,699)
(35,914)
Net income
$ 150,283
$ 254
$ 272,255
Forecast Abercrombie & Fitch's fiscal 2012 income statement assuming the following income statement relations. All percentages, other than sales growth and provision for income taxes, are based on percent of net sales.
Net Sales growth
10%
Cost of Goods Sold/Net sales
36%
Stores and distribution expense/Net sales
46%
Marketing, general and adminstrative expense/Net sales
12%
Other operating income, net
10,056
Interest Expense (Income),net
3,362
Tax expense from continuing operations (% of pretax income)
34 %
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)
2011
2012
Net sales
$3,468,777
$Answer
Cost of goods sold
1,256,596
Answer
Gross profit
2,212,181
Answer
Stores and distribution expense
1,589,501
Answer
Marketing, general and administrative expense
400,804
Answer
Other operating income, net
10,056
Answer
Operating income
231,932
Answer
Interest expense (income), net
3,362
Answer
Income from continuing operations before taxes
228,570
Answer
Tax expense from continuing operations
78,287
Answer
Net income from continuing operations
150,283
Answer
Net loss from discontinued operations (net of tax)
0
Answer
Net Income
$ 150,283
Answer
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