The financial statements of Mark s an d Spence r pl c (M&S ) are available at the book’s companion
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 g r oss p r ofit pe r centage? Evaluate
M&S’s inventory turnover and its gross profit percentage.