Chapter 10, Problem 4MAD

Neiman Marcus Group (NMG) is one of the largest luxury fashion retailers in the world. Kohl’s Corporation (KSS) sells moderately priced private and national branded products through more than 1,100 department stores located throughout the United States. The current assets and current liabilities at the end of a recent year for both companies are as follows (in millions):

1. a. Would an analysis of working capital between the two companies be meaningful? Explain.
2. b. Compute the quick ratio for both companies. Round to one decimal place.
3. c. Interpret your results.