The financial statements of Marks and Spencer plc (M&S) are available at the book’s companion website or can be accessed at http://annualreport.marksandspencer.com/_assets/downloads/Marks-and-Spencer-Annual-report-and-financial-statements-2012.pdf.

Instructions
Refer to M&S’s financial statements and the accompanying notes to answer the following questions.
  (a) What type of income statement format does M&S use? Indicate why this format might be used to present income statement information.
  (b) What are M&S’s primary revenue sources?
  (c) Compute M&S’s gross profit for each of the years 2011 and 2012. Explain why gross profit increased in 2012.
  (d) Why does M&S make a distinction between operating and non-operating profit?
  (e) Does M&S report any non-GAAP measures? Explain.