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    Nordstrom, Inc Financial Statement Data

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    Nordstrom, Inc. operates department stores in numerous states. Selected financial statement data (in millions of dollars) for the year ended January 31, 2004, are as follows.
    End of Year Beginning of Year
    Cash and cash equivalents $ 361 $ 340
    Receivables (net) 646 667
    Merchandise inventory 917 902
    Other current assets 648 616
    Total current assets $2,572 $2,525
    Total current liabilities $1,341 $1,123
    For the year, net sales were $7,131,000 and cost of goods sold was $4,559,000.
    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?

    Please show all work.

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    https://brainmass.com/business/current-assets/nordstrom-inc-177154

    Solution Preview

    End Beginning
    Current Assets 2572 2525
    Current Liabilities 1341 1123

    Working Capital 1231 1402

    Current Ratio 1.92 2.25

    Working Capital=Current Assets-Current ...

    Solution Summary

    The solution determines Nordstrom, Inc financial statement data for the years end. The working capital is determined in order to find if the liquidity improved or worsen during the year.

    $2.19

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