Acc280 Financial Accounting: E14-5 Nordstrom, Inc. operates department stores in numerous states

Note: There are several versions of this exercise - depending on the Year being compared. Please make sure you review and compare this tutorial to your homework to see if this is what you need.

Acc280 Financial Accounting

E14-5
Nordstrom, Inc. operates department stores in numerous states. Selected financial statement data for the year ending February 2, 2008, are as follows.
NORDSTROM, INC.
Balance Sheet (partial)
(in millions)
End of Year Beg of Year
Cash and cash equivalents 403 463
Receivables (net) 684 640
Merchandise inventory 997 956
Other current assets 658 815
Total current assets 2,742 2,874

Total current liabilities 1,433 1,623

For the year, net sales were $8,828, and cost of goods sold was $5,526 (in millions).

Instructions:
a. Compute the four liquidity ratios at the end of the year. (Round answers to 1 decimal place, e.g. 10.5.)
b. Using the data in the chapter, compare Nordstrom's liquidity with (1) that of J.C. Penney Company, and (2) the industry averages for department stores. (Round answers to 1 decimal place, e.g. 10.5.)
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