operates department stores in numerous states. Selected fi nancial statement data are as follows.

E18-5B Nordstrom, Inc. operates department stores in numerous states. Selected financial statement data are as follows. NORDSTROM, INC. Balance Sheet (partial) For the year, net sales were $8,828, and cost of goods sold was $5,862 (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 J. C. Penney Company, and (2) the industry averages for department stores. E18-6B Carter Incorporated had the following transactions occur involving current assets and current liabilities during February 2016. Feb. 3 Accounts receivable of $20,000 are collected. 7 Equipment is purchased for $28,000cash. 11 Paid $3,000 for a 3-year insurance policy. 14 Accounts payable of $12,000 are paid. 18 Cash dividends of $5,000 are declared. Additional information: 1. As of February 1, 2016, current assets were $125,000, and current liabilities were $50,000. 2. As of February 1, 2016, current assets included $13,000 of inventory and $2,000 of prepaid expenses. Instructions (a) Compute the current ratio as of the beginning of the month and after each transaction. (b) Compute the acid-test ratio as of the beginning of the month and after each