Nordstrom, Inc. operates department stores in numerous states. Selected financial statement data (in millions of dollars) for the year ended January 31, 2009, follow
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End of Year
|
Beginning of Year
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|
Cash and cash equivalents
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$72
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$358
|
|
Receivables (net)
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1,942
|
1,788
|
|
Merchandise inventory
|
900
|
956
|
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Other current assets
|
303
|
259
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Total current assets
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$3,217
|
$3,361
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|
Total current liabilities
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$1,601
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$1,635
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Instructions
(a) Compute working capital and the current ratio at the beginning of the year and at the end of the current year.
(b) Did Nordstrom"s liquidity improve or worsen during the year?
(c) Using the data in the chapter, compare Nordstrom"s liquidity with Best Buy"s.