Marks and Spencer is one of the United Kingdom's largest retailers, with over 600 stores in the U.K. and another 300 located internationally, selling clothing, home products, and food. The data in Exhibit 9-10 are excerpts from the 2009 consolidated income statement, balance sheet, and notes of Marks and Spencer Group pic.
In Exhibit 9-10
EXCERPT FROM THE consolidated income statement

Required:
a. Calculate the accounts payable turnover rate for Marks and Spencer for 2008 and 2009. Use the year-end trade payables in your calculations.
b. If you had only used the information available on the financial statements and not the information in the notes, how would your answer to the preceding part have differed?
c. Calculate the current ratio and quick ratio for Marks and Spencer for 2008 and 2009. (Refer to Chapter 6 if you need to review these ratios.)
d. Comment on Marks and Spencer's ability to meet its short-term obligations in 2008 and 2009.
e. Finance costs include interest expense on both current and long-term borrowings. What percentage of revenues did Marks and Spencer spend on finance costs in 2008 and 2009? Explain why you would, or would not, expect interest expense to be a relatively constant proportion of revenues.

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52 weeks 52 woeks 28 March 2009 Em 9,062.1 870.7 50.0 (214.5) 706.2 29 March 2008 Notes 2, 3 2, 3 9,022.0 1,2113 Operating profit Finance income Finance costs Profit on ordinary activities before taxation (146.6 1,129.1 EXCERPT FROM THE CONSOLIDATED BALANCE SHEET Expense analysis 2009 Total 9,062.1 (5,690.2) 3,371.9 Cm 9,022.0 (5,535.2) 3.486.8 Cost of sales Gross profit EXCERPT FROM THE CONSOLIDATED BALANCE SHEET As at 28 March 2009 Em 29 March 2008 Em Current assets 536.0 53.1 Other financial assets Trade and other receivables Derivative financial instruments Cash and cash equivalents 48.8 307.6 18.4 318.0 1,181.7 17 18 92.6 422.9 1,389.8 19 Current Liabilities Trade and other payables Borrowings and other financial liabilities Partnership liability to the Marks & Spencer UK Pension Scheme Derivative financial instruments Provisions Current tax liabilities 1,073.5 20 21 976.6 878.6 1.9 76.2 63.6 78.9 2,306.9 50.0 35.1 11.1 37.5 1,988.9 21 23