Exercise -
Suppose Nordstrom, Inc., which operates department stores in numerous states, has the following selected financial statement data for the year ending January 30, 2014.
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NORDSTORM, INC.
Balance Sheet (partial)
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(in millions)
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End-of-Year
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Beginning-of-Year
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Cash and cash equivalents
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$ 1,352
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$ 122
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Accounts receivable (net)
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3,460
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3,301
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Inventory
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1,527
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1,530
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Prepaid expenses
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150
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158
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Other current assets
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405
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357
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Total current assets
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$6,894
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$5,468
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Total current liabilities
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$3,424
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$2,722
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For the year, net sales were $14,039 and cost of goods sold was $9,058 (in millions).
(a) Compute the four liquidity ratios at the end of the year. (Round answers to 1 decimal place, e.g. 1.6 .)
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Current ratio
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2.01:1
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Acid-test ratio
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1.40:1
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Accounts receivable turnover
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times
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Inventory turnover
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times
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