Nordstrom, Inc. operates department stores in numerous states. Suppose selected financial statement data (in millions of dollars) for a recent year follow. End of Year Beginning of YearCash and cash equivalents $ 72 $ 358Receivables (net) 1,942 1,788Merchandise inventory 900 956Other current assets 303 259Total current assets $3,217 $3,361Total current liabilities $1,601 $1,635 Compute working capital and the current ratio at the beginning of the year and at the end of the year. (Round current ratio to 2 decimal places, e.g. 15.25.) Beginning of Year End of YearWorking capital $enter a dollar amount $enter a dollar amount Current ratio enter current ratio rounded to 2 decimal places :1 enter current ratio rounded to 2 decimal places :1

Beginning of year working capital = Total current assets - Total current liabilities…

Answered: Nordstrom, Inc. operates department…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Nordstrom, Inc. operates department stores in numerous states. Suppose selected financial statement data (in millions of dollars) for a recent year follow.

	End of Year	Beginning of Year
Cash and cash equivalents	$ 72	$ 358
Receivables (net)	1,942	1,788
Merchandise inventory	900	956
Other current assets	303	259
Total current assets	$3,217	$3,361
Total current liabilities	$1,601	$1,635

Compute working capital and the current ratio at the beginning of the year and at the end of the year. (Round current ratio to 2 decimal places, e.g. 15.25.)

	Beginning of Year		End of Year
Working capital	$	enter a dollar amount		$	enter a dollar amount
Current ratio		enter current ratio rounded to 2 decimal places	:1		enter current ratio rounded to 2 decimal places	:1

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