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| 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 inventory956 997 Prepaid expenses78 61 Other current assets181 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:1Acid-test ratio:1Receivables turnovertimesInventory turnovertimes |
| 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.)RatioNordstromJ. C. PenneyIndustryCurrent:1:1:1Acid-test:1:1:1Receivables turnover:1:1:1Inventory turnover:1:1:1Nordstrom is belowabove J.C. Penney for the current ratio Nordstrom is abovebelow J.C. Penney for the acid-test ratio Nordstrom is abovebelow J.C. Penney for the receivable turnover Nordstrom is abovebelowJ.C. Penney for the inventory turnoverNordstrom is belowabove Industry for the current ratio Nordstrom is belowabove Industry for the acid-test ratio Nordstrom is belowabove Industry for the receivable turnover Nordstrom is belowaboveIndustry for the inventory turnover |
