Nordstrom, Inc

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.)

Ratio

Nordstrom

J. C. Penney

Industry

Current

:1

:1

:1

Acid-test

:1

:1

:1

Receivables turnover

:1

:1

:1

Inventory turnover

:1

:1

:1

 

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