Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Nordstrom, Inc. operates department stores in numerous states. Suppose selected financial statement data (in millions) for 2020 are presented below. End of Year Beginning of

Nordstrom, Inc. operates department stores in numerous states. Suppose selected financial statement data (in millions) for 2020 are presented below.

End of Year

Beginning of Year

Cash and cash equivalents

$ 790

$ 67

Accounts receivable (net)

2,000

1,850

Inventory

890

900

Other current assets

290

333

Total current assets

$3,970

$3,150

Total current liabilities

$2,050

$1,600

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 in days 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

Step: 3

blur-text-image

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

ACCA Financial Accounting Study Text 2022 23

Authors: Emile Woolf International

1st Edition

1848436831, 978-1848436831

More Books

Students also viewed these Accounting questions