Abercrombie & Fitch Financial Statement Analysis

Financial Statement Analysis of Abercrombie & Fitch.

Abercrombie & Fitch sells casual apparel and personal care products for men, women, andchildren through retail stores located primarily in shopping malls. Its fiscal year ends on January 31 of each year. Financial statements for Abercrombie & Fitch for fiscal years ending January 31, Year 3, Year 4, and Year 5 appear in Exhibit 4.34 (balance sheets), Exhibit 4.35 (income statements), and Exhibit 4.36 (statements of cash flows). These financial statements reflect the capitalization of operating leases in property, plant, and equipment and
long-term debt, atopic discussed in Chapter 6. Exhibit 4.37 presents financial statement ratios for Abercrombie& Fitch for Years 3 and 4. Selected data for Abercrombie & Fitch appear here. You are provided with the financial statements attached.

Respond to the following questions relating to Abercrombie and Fitch. This summary of your responses should be a total of 2-5 pages in (APA format) double-spaced, single-sided, Times New Roman Font, 12 pitch, 1-inch margins, with no grammar or spelling errors; APA includes a reference page at the end.
The reference pages will not be counted in the 3-5 pages. You should have at least 2 references – your book along with at least 1 other reference. You must cite your references.
Calculate the ratios in Exhibit 4.37 for Year 5. The income tax rate is 35%.
Analyze the changes in ROA for Abercrombie & Fitch during the three-year period, suggesting possible reasons for the changes observed.
Analyze the changes in ROCE for Abercrombie & Fitch during the three-year period, suggesting possible reasons for the changes observed.