(a) What type of income statement format does M&S use? Indicate why this format might be used to present income statement information.

(b) What are M&S’s primary revenue sources?

(c) Compute M&S’s gross profit for each of the years 2012 and 2013. Explain why gross profit increased in 2013.

(d) Why does M&S make a distinction between operating and non-operating profit?

(e) Does M&S report any non-IFRS measures? Explain.

  
 
 

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Consolidated cash flow information 52 weeks ended 52 wooks ondod 30 March 2013 31 March 2012 Notos Cash flows from operating activities Cash generated from operations Income tax paid Net cash generated from operating activities Cash flows from investing activities Purchase of property, plant and equipment Purchase of intang ble assets Sale/purchase) of current financial assets Interest received Net cash used in investing activities Cash flows from financing activities Interest paid Cash infow(outfiow) from borrowings Drawdown of syndicated loan notes Issue of medum-term notes Redemption of medium-term notes Decrease in obligations under finance leases Payment of liability to the Marks & Soencer UK Pension Scheme Equity dividends pad Shares issued on exercise of employee share options Purchase of own shares by employee trust Net cash used in financing activities Net cash outflow from activities Effects of exchange rate changes Opering net cash Closing net cash 1,352.1 (149.1) 1,203.0 26 1,246.2 (106.0) 1,140.2 (642.6) (187.1) 243.4 (564.3) (156.4) (44.8) 7.7 5.9 (580.4) (757.8) (135.2) (135.9) (41.4) 0.5 81.0 395.6 (606.4) (11.0) (71.9) (271.3) 22.9 295.5 (307.6) (13.0) (71.9) (267.8) 44,3 (595.8) (36.0 0.9 195.8 160.7 (13.2) (511.0) (65.8) (1.9) 263.5 195.8 27 52 weeks endod 30 March 2013 £m 52 weeks onded 31 March 2012 Notas Reconciliation of net cash flow to movement in net debt Opening net debt Net cash outflow from activities DecreaseMncrease n current financial assets Decrease in debt financing Partnership liability to the Marks & Spencer UK Pension Scheme (non-cash) Exchange and other non-cash movements Movement in net debt Closing net debt (1,857.1) (36.01 (243.4) (1,900.9 (66.8 44.8 132.7 (606.0) (4.5) (757.2 (2,614.3) 138.4 71.9 (1.7) 43.8 (1,857.1) 27 Consolidated cash flow information 52 weeks ended 52 wooks ondod 30 March 2013 31 March 2012 Notos Cash flows from operating activities Cash generated from operations Income tax paid Net cash generated from operating activities Cash flows from investing activities Purchase of property, plant and equipment Purchase of intang ble assets Sale/purchase) of current financial assets Interest received Net cash used in investing activities Cash flows from financing activities Interest paid Cash infow(outfiow) from borrowings Drawdown of syndicated loan notes Issue of medum-term notes Redemption of medium-term notes Decrease in obligations under finance leases Payment of liability to the Marks & Soencer UK Pension Scheme Equity dividends pad Shares issued on exercise of employee share options Purchase of own shares by employee trust Net cash used in financing activities Net cash outflow from activities Effects of exchange rate changes Opering net cash Closing net cash 1,352.1 (149.1) 1,203.0 26 1,246.2 (106.0) 1,140.2 (642.6) (187.1) 243.4 (564.3) (156.4) (44.8) 7.7 5.9 (580.4) (757.8) (135.2) (135.9) (41.4) 0.5 81.0 395.6 (606.4) (11.0) (71.9) (271.3) 22.9 295.5 (307.6) (13.0) (71.9) (267.8) 44,3 (595.8) (36.0 0.9 195.8 160.7 (13.2) (511.0) (65.8) (1.9) 263.5 195.8 27 52 weeks endod 30 March 2013 £m 52 weeks onded 31 March 2012 Notas Reconciliation of net cash flow to movement in net debt Opening net debt Net cash outflow from activities DecreaseMncrease n current financial assets Decrease in debt financing Partnership liability to the Marks & Spencer UK Pension Scheme (non-cash) Exchange and other non-cash movements Movement in net debt Closing net debt (1,857.1) (36.01 (243.4) (1,900.9 (66.8 44.8 132.7 (606.0) (4.5) (757.2 (2,614.3) 138.4 71.9 (1.7) 43.8 (1,857.1) 27

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1 Primarily there are two types of income statements Multistep income statements and singlestep inco... View the full answer