download: nordstrom inc solution
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Download: http://solutionzip.com/downloads/nordstrom-inc-solution/E18-5Nordstrom, 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-YearBeginning-of-YearCash and cash equivalents $ 358 $ 403Receivables (net) 1,788 684Merchandise inventory 956 997Prepaid expenses 78 61Other current assets 181597Total current assets $3,361$2,742Total current liabilities $1,635$1,433For the year, net sales were $8,828, and cost of goods sold was $5,526 (in millions).Compute the four liquidity ratios at the end of the year. (Round answers to 1 decimal place, e.g. 10.5.)Current ratio :1Acid-test ratio :1Receivables turnover timesInventory turnover timesUsing 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.)Download: http://solutionzip.com/downloads/nordstrom-inc-solution/TRANSCRIPT
Download: http://solutionzip.com/downloads/nordstrom-inc-solution/
E18-5
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
Beginning-of-Year
Cash and cash equivalents $ 358 $ 403
Receivables (net) 1,788 684
Merchandise inventory 956 997
Prepaid expenses 78 61
Other current assets 181
597
Total current assets $3,361
$2,742
Total current liabilities $1,635
$1,433
For the year, net sales were $8,828, and cost of goods sold was $5,526 (in millions).
Compute the four liquidity ratios at the end of the year. (Round answers to 1 decimal place, e.g. 10.5.)
Current ratio :1
Acid-test ratio :1
Receivables turnover times
Inventory turnover times
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.)
Download: http://solutionzip.com/downloads/nordstrom-inc-solution/