The following amounts are available from the 2010 annual report of Nordstrom, Inc., the fashion retailer. (All

Question:

The following amounts are available from the 2010 annual report of Nordstrom, Inc., the fashion retailer. (All amounts are in millions of dollars and January 29, 2011, is the end of the company's 2010 fiscal year.)
Cost of sales and related buying and occupancy costs...........$5,897
Merchandise inventories, January 29, 2011...........................977
Merchandise inventories, January 30, 2010...........................898
Required
1. Compute Nordstrom's for 2010.
2. What is the average length of time it takes to sell an item of inventory? Explain your answer.
3. Do you think the average length of time it took Nordstrom to sell inventory in 2010 is reasonable?
What other information do you need to fully answer that question?
Inventory Turnover Ratio
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