Financial Reporting Problem Marks and Spencer plc (M&S) The financial statements of M&S (GBR) are presented in Appendix A. The company’s complete annual report, including the notes to the financial statements, is available online.

Instructions

(a) What were M&S’s total assets at March 30, 2013? At March 31, 2012?

(b) How much cash (and cash equivalents) did M&S have on March 30, 2013?

(c) What were M&S’s selling and administrative expenses in 2013? In 2012?

(d) What were M&S’s revenues in 2013? In 2012?

(e) Using M&S’s financial statements and related notes, identify items that may result in adjusting entries for prepayments and accruals.

(f) What were the amounts of M&S’s depreciation and amortization expense in 2012 and 2013?

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Financial statements Consolidated income statement Revenue Operating profit Finance income Finance costs Profit before tax Income tax expense Profit for the year Attributable to: Equity shareholders of the Company Non-controlling interests 52 weeks ended 30 March 2013 52 weeks ended 31 March 2012 Notes m 2,3 10,026.8 m 9,934.3 2,3 756.0 746.5 199 6 26.5 (218.2) 48.3 (136.8) 4 564.3 658.0 (106.3) (168.4) 458.0 489.6 Basic earnings per share Diluted earnings per share Non-GAAP measures: Underlying profit before tax Profit before tax Adjusted for: Strategic programme costs Restructuring costs IAS 36 Impairment of assets IAS 39 Fair value movement of put option over non-controlling interest in Czech business IAS 39 Fair value movement of embedded derivative Fair value movement on buy back of the Puttable Callable Reset medium-term notes Reduction in M&S Bank income for the impact of the financial product mis-selling provision Underlying profit before tax Underlying basic earnings per share Underlying diluted earnings per share ico ico 8 8 466.7 513.1 (8.7) (23.5) 458.0 489.6 29.2p 32.5p 29.0p 32.2p 564.3 658.0 55555551 63 60 6.6 18.4 9.3 44.9 (15.6) (5.8) 0.2 75.3 15.5 665.2 705.9 8 icoico 8 32.7p 34.9p 32.5p 34.6p