The consolidated profit and loss account gives detailed information into the company it shows which parts of the business are increasing sales and which parts are losing sales so you can see where the problems in the business are and where it is losing money. A balance sheet and cash flow statement is also included they show where the money is coming from and how it is being spent. The balance sheets show where the money is obtained and how it is spent. Figures for 1999 and 1998 are included so you can compare them. Profitability and liquidity ratios can be worked out from this information. The Recovery programme shows what Marks and Spencers is doing to stop profits falling I will use this information to help me think of recommendations. A report in the Mirror newspaper about Marks and Spencer is useful as it has the opinions of four experts on how to stop Marks Spencers profits falling. The report says M&S needs to become more fashionable in the clothes it stocks and it needs to restore PR through advertising. The Financial summary shows that there isn't much difference between the 1998 and 1999 group turnovers, but there is a very large difference between the 1998 and 1999 profits to such an extent that Marks and Spencers profits have nearly halved, this would suggest that costs have radically increased. The increase in costs will be mainly attributable to development of new stores and expansion. More employees have been hired this is shown on the cash flow sheet where payments to employees has gone up also the financial summary shows that retail space has gone up. The costs of expansion are shown on the balance sheet under long-term creditors where they have gone up by 585.4 million. Spending is also shown on the balance sheet where cash at bank and in hand has gone down from 614.9m in 1998 to 281.5 in 1999 The profitability margin shows that in 1999 Marks and Spencers made a lot less profit compared to turnover, only 7.