The of M&S are presented in Appendix E. The company’s complete annual report, including the notes to the is available online.
Instructions
Refer to M&S’s 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. Identify the various techniques of disclosure M&S might have used to disclose additional pertinent financial information. Which technique does it use in its financials?
c. In what classifications are M&S’s investments reported? What valuation basis does M&S use to report its investments? How much working capital did M&S have on 31 March 2016? On 1 April 2017?
d. What were M&S’s cash flows from its operating, investing, and financing activities for 2017? What were its trends in net cash provided by operating activities over the period 2016 to 2017? Explain why the change in and in accrued and other liabilities is added to net income to arrive at net cash provided by operating activities.
e. Compute M&S’s (1) current cash debt coverage, (2) cash debt coverage, and (3) for 2017. What do these ratios indicate about M&S’s financial conditions?
