Nordstrom, Inc. (USA), operates department stores in numerous states. The following is selected financial statement data for a recent year.

For the year, net sales were $12,166 and cost of goods sold was $7,737 (in millions).
Instructions

a. Compute the four liquidity ratios at the end of the year.

b. Using the data in the chapter, compare Nordstrom’s liquidity with (1) that of Park Street, and (2) the industry averages for department stores.
Perform current and acid-test ratio analysis.

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Nordstrom, Inc. Statement of Financial Position (partial) (in millions) End-of-Year Beginning-of-Year Other current assets $ 239 $ 227 Prepaid expenses 87 80 Merchandise inventory 1,531 1,360 Accounts receivable (net) 2,177 2,129 Cash and cash equivalents 1,194 1,285 Total current assets $5,228 $5,081 Total current liabilities $2,541 $2,226