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 alternative formats could M&S have adopted for its statement of financial position? Which format did it adopt?
b. How much working capital did M&S have on April 2, 2016? On March 28, 2015?
c. What were M&S's cash flows from its operating, investing, and financing activities for 2016? What were its trends in net cash provided by operating activities over the period 2015 to 2016? Explain why the change in accounts payable and in accrued and other liabilities is added to net income to arrive at net cash provided by operating activities.
d. Compute M&S's: (1) current cash debt coverage, (2) cash debt coverage, and (3) free cash flow for 2016. What do these ratios indicate about M&S's financial conditions?