Question - Nordstrom Inc. operates department stores in numerous states. Selected financial statement data for the year ending January 29, 2012, are as follows.
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NORDSTROM, 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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$ 508
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$ 381
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Receivables (net)
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653
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708
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Merchandise inventory
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1,030
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944
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Prepaid expenses
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76
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69
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Other current assets
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645
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576
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Total current assets
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$2,912
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$2,678
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Total current liabilities
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$1,893
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$1,473
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For the year, net sales were $8,140, and cost of goods sold was $4,584 (in millions).
Compute the four liquidity ratios at the end of the year.
Using the data in the chapter, compare Nordstrom's liquidity with (1) that of J.C. Penney Company, and (2) the industry averages for department stores.