The financial statements of Marks and Spencer plc (M&S) are available at the book's companion website or can be accessed at http://corporate.marksandspencer.com/investors/b78e6f56a12d4fc3abacfe70e945c28c

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 costs does M&S include in Inventory and Cost of Sales?

(d)	What was M&S's inventory turnover in 2012? What is its gross profit percentage? Evaluate M&S's inventory turnover and its gross profit percentage.