Managerial Accounting: Tools for Business Decision Making
7th Edition
ISBN: 9781118334331
Author: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
Publisher: WILEY
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Textbook Question
Chapter 14, Problem 14.5E
Suppose Nordstrom, Inc., which operates department stores in numerous states, has the following selected financial statement data for a recent year.
NORDSTROM, INC.
Balance Sheet (partial)
| (in millions) | End-of-Year | Beginning-of-Year |
| Cash and cash equivalents | $ 795 | $ 72 |
| 2,035 | 1,942 | |
| Inventory | 898 | 900 |
| Prepaid expenses | 88 | 93 |
| Other current assets | 238 | 210 |
| Total current assets | $4,054 | $3,217 |
| Total current liabilities | $2,014 | $1,601 |
For the year, net sales were $8,258 and cost of goods sold was $5,328 (in millions).
Instructions
(a) Compute the four
(b) Using the data in the chapter, compare Nordstrom’s liquidity with (1) that of Macy’s, Inc., and (2) the industry averages for department stores.
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Chapter 14 Solutions
Managerial Accounting: Tools for Business Decision Making
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