Question

Question 4 of 4 < -/1 = View Policies Current Attempt in Progress Nordstran, 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 $ 75 $ 385 Receivables (net) 1,940 1,930 Merchandise inventory 1,129 1,145 Other current assets 310 275 Total current assets $3.454 $3,735 Total current liabilities $1,570 $1,660 Compute working capital and the current ratio at the beginning of the year and at the end of the year. (Round current ratio to 2 decimal places, eg 1525.) Beginning of Year End of Year $ $ Working capital Current ratio :1 :1 e Textbook and Media Did Nordstrom's liquidity improve or worsen during the year? e Textbook and Media

Answer 1

	Beginning of year	End of year
Working capital	2,075	1,884
Current ratio	2.25	2.20

working;

working capital = current assets - current liability

end of the year;

=>$3,454 - 1,570

=>$1,884.

beginning of the year;

=>$3,735 - 1,660

=>$2,075.

Current ratio = current assets / current liabilities

beginning of the year = 3735/1660

=>2.25

end of the year =3454/1570

=>2.20.

Part 2;

Worsen

Since the current ratio decreased in value, it can be said that the liquidity worsened during the year.