Nordstrom, Inc. operates department stores in numerous states. Selected financial statement data (in millions of dollars) for a recent year follow.

Instructions

(a) Compute working capital and the current ratio at the beginning of the year and at the end of the 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 (see page 55).

Transcribed Image Text:

Cash and cash equivalents Receivables (net) Merchandise inventory End of Year $ 72 Beginning of Year $ 358 1,788 1,942 900 956 Other current assets 303 259 Total current assets $3,217 $3,361 Total current liabilities $1,601 $1,635