Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Nordstrom, Inc. operates department stores in numerous states. Selected hypothetical financial statement data (in millions) for 2022 are presented below. End of Year Beginning of

Nordstrom, Inc. operates department stores in numerous states. Selected hypothetical financial statement data (in millions) for 2022 are presented below.

End of Year

Beginning of Year

Cash and cash equivalents

$ 740

$ 77

Accounts receivable (net)

1,980

1,830

Inventory

900

910

Other current assets

310

443

Total current assets

$3,930

$3,260

Total current liabilities

$1,990

$1,630

For the year, net credit sales were $8,258 million, cost of goods sold was $5,328 million, and net cash provided by operating activities was $1,251 million. Compute the current ratio, accounts receivable turnover, average collection period, inventory turnover and days in inventory at the end of the current year. (Round current ratio to 2 decimal places, e.g. 1.83 and all other answers to 1 decimal place, e.g. 1.8. Use 365 days for calculation.)

Current ratio

enter current ratio rounded to 2 decimal places

:1
Accounts receivable turnover

enter accounts receivable turnover in times rounded to 1 decimal place

times
Average collection period

enter average collection period rounded to 1 decimal place

days
Inventory turnover

enter inventory turnover in times rounded to 1 decimal place

times
Days in inventory

enter days in inventory rounded to 1 decimal place

days

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Report On Trade Conditions In China

Authors: Harry R. Burrill, Raymond F. Crist

1st Edition

1138617806, 9781138617803

More Books

Students also viewed these Accounting questions