Abercrombie and Fitch is a leading retailer of casual apparel for men, women, an

Question

Abercrombie and Fitch is a leading retailer of casual apparel for men, women, and children. Assume that you are employed as a stock analyst and your boss has just completed a review of the new Abercrombie annual report. She provided you with her notes, but they are missing some information that you need. Her notes show that the ending inventory for Abercrombie in the current year was $372,482,000 and in the previous year was $333,183,000. Net sales for the current year were $3,540,216,000. Cost of goods sold was $1,178,544,000. Net income was $272,245,000.

1. Determine the amount of purchases for the year

Abercrombie and Fitch is a leading retailer of casual apparel for men, women, and children. Assume that you are employed as a stock analyst and your boss has just completed a review of the new Abercrombie annual report. She provided you with her notes, but they are missing some information that you need. Her notes show that the ending inventory for Abercrombie in the current year was $372,482,000 and in the previous year was $333,183,000. Net sales for the current year were $3,540,216,000. Cost of goods sold was $1,178,544,000. Net income was $272,245,000.

1. Determine the amount of purchases for the year

Explanation / Answer

Solution:

Ending Inventory 333,183,000

Less: Begining Inventory 372,482,000

= - 39,299,000   

Add: Sales 3,540,216,000

   Purchase = 3,500,917,000

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