Nordstrom, Inc., operates department stores in numerous states. Selected financial statement data (in millions of dollars) for the year ended January 31, 1999, are as follows:

For the year, net sales were $5,028,000 and cost of goods sold was $3,345,000.
Instructions

(a) Compute the working capital and 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.

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Cash and cash equivalents Receivables (net) Merchandise inventory Other current assets End of Year Beginning of Year $ 241 $ 25 587 750 664 827 102 95 $1,611 Total current assets $1,680 Total current liabilities $ 769 $ 943