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. How does M&S value its inventories? Which inventory costing method does M&S use as a basis for reporting its inventories?
b. How does M&S report its inventories in the statement of financial position? In the notes to its financial statements, what three descriptions are used to classify its inventories?
c. What was M&S inventory turnover in 2016? What is its gross profit percentage? Evaluate M&S's inventory turnover and its gross profit percentage.