1. Nordstrom refers to its income statement using another name. What is it?

They refer to there income statement as consolidated statement of earnings.

2. What are the amounts Nordstrom reports for total assets, total liabilities, and total stockholders’ equity in the balance sheet for the most recent year? Verify that the basic accounting equation balances.

Nordstrom reports total assets of $9,245 million, total liabilities of $6,805, and total stockholders’ equity of $2,440 million. The basic accounting equation balances:

Assets=Liabilities + Stockholders’ equity

9245=6805 + 2440

9245=9245

3. Who are Nordstrom’s external auditors?

Nordstrom’s external auditors are the Independent Registered Public Accounting firm.

4. What does the Report of Independent Registered Public Accounting firm indicate about the amounts represented in the company’s financial statements?

The Report of Independent Registered Public Accounting firm indicates that the amounts represented in the company’s financial statements are presented fairly the financial position of the company and subsidiaries as of January 31, 2015 and February 1, 2014.

5. In the Report of Independent Registered Public Accounting who is held responsible for maintaining effective internal control over financial reporting

The Report of Independent Registered Public Accounting firm states that the company’s management is held responsible for maintaining effective internal control over financial reporting.

6. What are Nordstrom’s primary components of cost of sales?

Nordstrom’s primary components of cost of sales are purchase cost of inventory sold, in- bound freight and certain costs from the loyalty program.

7. What is Nordstrom’s policy for recognizing revenues from gift cards?

Nordstrom’s policy for recognizing revenues from gift cards is when the gift card is redeemed by the customer or recognizes breakage of income if the likelihood of redemption is remote.

8. What does Nordstrom’s account receivable usually consist of? How do they record uncollectible balances?

Nordstrom’s Accounts receivable include credit card receivables from Nordstrom private label and Visa credit cards, as well as credit and debit card

Receivables from third parties. Nordstrom’s records credit card receivables on their Consolidated Balance Sheets at the outstanding balance, net of

an allowance for credit losses. The allowance for credit losses reflects their estimate of the losses inherent in our credit card receivables

as of the balance sheet date, including uncollectible finance charges and fees. They estimate such credit losses based on several factors,

including historical aging and delinquency trends, write-off experience, portfolio concentration and risk metrics and general economic

Conditions. They record estimated uncollectible balances to bad debt expense while estimated uncollectiblefinance charges and fees result in a reduction of credit card revenue.

9. Which inventory method does Nordstrom use?

Nordstom inventory method is stated at the lower of cost or market value using the retail inventory method. Under the retailmethod, the valuation of inventories and the resulting gross margins are determined by applying a calculated cost-to-retail ratio to the retail value of ending inventory. The value of their inventory on the balance sheet is reduced by a charge to cost of sales foretail inventory markdowns taken on the selling floor.

10. What are the net sales for the past two years?

The net sales for the year ending January 31st, 2014: $13,110,000

The net sales for the year ending January 31st, 2013: $12,166,000

11. Why was there a decrease in Nordstrom’s free cash flow for the year ended in 2014?

For the year ended January 31, 2015, Free Cash Flow decreased to $96 compared with $324 for the year ended February 1, 2014, primarily due to a decrease in cash provided by operating activities and anincrease in capital investments.

12. What is the amount of cash and cash equivalents reported in the most two most recent years?

The amount of cash and cash equivalents for the year ended January 2015 was $827 million. The amount for cash and cash equivalents for the year ended January 2014 was $1,194,000.

13. How does Nordstrom generate most of its operating cash inflow?

The majority of Nordstrom’s operating cash inflowsare derived from sales.

14. When does Nordstrom recognize revenue? Is this consistent with the Revenue Recognition Principle?

Nordstoms recognizes revenue from sales at retail stores at the point of sale, net of estimated sales returns and excluding sales taxes. Revenue from sales to customers shipped directly from their stores, website and catalog, which includes shipping revenue when applicable, isrecognized upon estimated receipt by the customer. They also estimate customer merchandise returns based on historical return patterns and

reduce sales and cost of sales accordingly. Nordstom recognizes revenue in the accounting period in which it has satisfied its performance obligation; and therefore, in accordance with the Revenue Recognition Principle.

15. What amount of cash dividends was paid in year 2014, 2013 & 2012?

2014: dividends of $1.32 per share

2013: dividends of $1.20 per share

2012: dividends of $1.08 per share

16. How much net cash from investing activities was reported in 2015?

17. What depreciation method does Nordstrom use for its assets? What is the estimated useful life for store fixtures and equipment?

18. Did capital expenditures increase or decrease from year 2013 to 2014? Why did they increase or decrease?

19. Nordstrom consolidates its financial statements. What is included in its consolidation?

20. What was total rent expense for last three years?

21. Did Nordstrom purchase any treasury stock in year 2014? If yes, how much?

22. What was effective tax rate used in 2014?