The financial statements of Louis Vuitton are presented in Appendix F. The complete annual report, including the notes to its fi nancial statements, is available at the company’s website.

Instructions

Use Louis Vuitton’s annual report to answer the following questions.

a. Does Louis Vuitton use a multiple-step or a single-step income statement format? Explain how you made your determination.

b. Instead of “interest expense,” what label does Louis Vuitton use for interest costs that it incurs?

c. Using the notes to the company’s financial statements, determine the following:

1. Composition of the inventory.

2. Amount of inventory (gross) before impairment.