Nordstrom, Inc. operates department stores in
numerous states. Suppose selected financial statement data (in
millions of dollars) for a recent year follow.
ANSWER
BEGINING OF THE YEAR END OF YEAR
WORKING CAPITAL $2,145 $1,900
( CURRENT ASSETS - CUURENT LIABILITIES) (3795 - 1650) (3420 - 1520)
CURRENT RATIO 2.30 : 1 2.25 : 1
( CURRENT ASSETS / CURRENT LIABILITIES) ( 3795 / 1650) ( 3420 / 1520)
WORSEN, THE LIQUIDITY DID NOT IMPROVE DURING THE YEAR. THE CUURENT RATIO DECLINED, WHICH INDICATED THAT THE COMPANY MAY NOT HAVE SUUFICIENT ECONOMIC RESOURCES TO PAY OFF ITS NEAR FUTURE LIABILITIES.
ALSO THE WORKING CAPITAL DECLINED, WHICH INDICATE COMPANY MAY HAVE LESS RESOURCES TO CARRY OPERATIONS AS COMPARED TO BEGINING OF THE YEAR.
Nordstrom, Inc. operates department stores in numerous states. Suppose selected financial statement data (in millions of...
IRINGFIVE Nordstrom, Inc. operates department stores in numerous states. Suppose selected financial statement data (in millions of dollars) for a recent year follow. Cash and cash equivalents Receivables (net) Merchandise inventory End of Year $ 95 1,970 Beginning of Year $ 410 1,810 950 1.288 Other current assets 405 Total current assets $3,420 $1,520 310 $3,818 $1,660 Total current liabilities Compute working capital and the current ratio at the beginning of the year and at the end of the year....
Nordstrom, Inc. operates department stores in
numerous states. Suppose selected financial statement data (in
millions of dollars) for a recent year follow.
End of Year
Beginning of Year
Cash and cash equivalents
$ 65
$ 395
Receivables (net)
1,900
1,940
Merchandise inventory
968
838
Other current assets
475
315
Total current assets
$3,408
$3,488
Total current liabilities
$1,600
$1,600
Did Nordstrom’s liquidity improve or
worsen during the year?
Compute working capital and the current ratio at the beginning
of the year and...
Nordstrom, Inc. operates department stores in
numerous states. Suppose selected financial statement data (in
millions of dollars) for a recent year follow.
End of Year
Beginning of Year
Cash and cash equivalents
$ 80
$ 390
Receivables (net)
1,960
1,950
Merchandise inventory
625
886
Other current assets
375
300
Total current assets
$3,040
$3,526
Total current liabilities
$1,520
$1,720
Compute working capital and the current ratio at the beginning
of the year and at the end of the year. (Round current
ratio...
Nordstrom, Inc. operates department stores in
numerous states. Suppose selected financial statement data (in
millions of dollars) for a recent year follow.
End of Year
Beginning of Year
Cash and cash equivalents
$ 85
$ 420
Receivables (net)
1,950
2,040
Merchandise inventory
1,152
1,374
Other current assets
485
225
Total current assets
$3,672
$4,059
Total current liabilities
$1,530
$1,650
(a)
Compute working capital and the current ratio at the beginning of
the year and at the end of the year. (Round current...
Nordstrom, Inc. operates department stores in numerous states. Selected hypothetical financial statement data (in millions) for 2022 are presented below. End of Year Beginning of Year Cash and cash equivalents $790 $67 Accounts receivable (net) 2,000 1,850 Inventory 890 900 Other current assets 290 333 Total current assets $3,970 $3,150 Total current liabilities $2,050 $1,600 For the year, net credit sales were $8,258 million, cost of goods sold was $5,328 million, and net cash provided by operating activities was $1,251...
Nordstrom, Inc. operates department stores in numerous states. Suppose selected financial statement data (in millions) for 2017 are presented below. End of Year Beginning of Year Cash and cash equivalents $ 810 $ 79 Accounts receivable (net) 2,070 1,890 Inventory 880 910 Other current assets 490 401 Total current assets $4,250 $3,280 Total current liabilities $2,040 $1,630 For the year, net credit sales were $8,258 million, cost of goods sold was $5,328 million, and net cash provided by operating activities...
Exercise 2-10 a-b (Part Level Submission) Nordstrom, Inc. operates department stores in numerous states. Suppose selected financial statement data (in millions of dollars) for a recent year follow. End of Year Beginning of Year $ 75 $ 375 1,990 1,880 688 1,125 Cash and cash equivalents Receivables (net) Merchandise inventory Other current assets Total current assets Total current liabilities 495 260 $3,248 $3,640 $1,600 $1,750 (a) Compute working capital and the current ratio at the beginning of the year and...
Nordstrom, Inc. operates department stores in numerous states. Suppose selected financial statement data (in millions) for 2020 are presented below. End of Year Beginning of Year Cash and cash equivalents $ 1,441 $ 137 Accounts receivable (net) 3,900 3,700 Inventory 1,700 1,700 Other current assets 619 576 Total current assets $7,660 $6,113 Total current liabilities $3,830 $3,042 For the year, net credit sales were $15,580 million, cost of goods sold was $10,200 million, and net cash provided by operating activities...
Nordstrom, Inc. operates department stores in numerous states. Selected hypothetical financial statement data (in millions) for 2022 are presented below. End of Year Beginning of Year Cash and cash equivalents $ 760 $ 77 Accounts receivable (net) 2,080 1,890 Inventory 810 890 Other current assets 730 363 Total current assets $4,380 $3,220 Total current liabilities $2,000 $1,610 For the year, net credit sales were $8,258 million, cost of goods sold was $5,328 million, and net cash provided by operating activities...
Suppose Nordstrom, Inc., which operates department stores in numerous states, has the following selected financial statement data for a recent year NORDSTORM, INC. Balance Sheet (partial) Beginning-of- Year (in millions) End-of-Year Cash and cash equivalents Accounts receivable (net) Inventory Prepaid expenses Other current assets Total current assets Total current liabilities $ 1,034 2,646 1,167 114 309 $5,270 $2,618 $94 2,525 1,170 121 273 $4,183 $2,081 For the year, net sales were $10,735 and cost of goods sold was $6,926 (in...