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 Refer to M&S’s financial statements and the accompanying notes to answer the following questions.

(a) What was the composition of M&S’s borrowings and other financial liabilities shown in its current liability section at year-end 2013?

(b) What was M&S’s year-end 2013 working capital and current ratio? Comment on M&S’s liquidity.

(c) What types of commitments and contingencies has M&S reported in its financial statements?

What is management’s reaction to these contingencies?

Data From Appendix A 

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APPENDIX A Specimen Financial Statements: Marks and Spencer Group plc 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 Basic earnings per share Diluted earnings per share 52 weeks ended 30 March 2013 52 weeks ended 31 March 2012 Notes 2,3 m 10,026.8 m 9,934.3 2,3 756.0 746.5 6 26.5 48.3 6 (218.2) (136.8) 564.3 658.0 (106.3) (168.4) 458.0 489.6 466.7 513.1 (8.7) (23.5) 458.0 489.6 29.2p 32.5p.... 29.0p 32.2p