Financial Accounting
7th Edition
ISBN: 9781118162286
Author: Kimmel, Paul D.
Publisher: John Wiley & Sons Inc
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Textbook Question
Chapter 2, Problem 2.9E
Nordstrom, Inc. operates department stores in numerous states. Selected financial statement data (in millions of dollars) for a recent year follow.
Instructions
- (a) Compute
working capital and thecurrent ratio at the beginning of the year and at the end of the year. - (b) Did Nordstrom’s liquidity improve or worsen during the year?
- (c) Using the data in the chapter, compare Nordstrom's liquidity with Best Buy’s (see page 53).
Page 55:
Current ratio:
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INCOME STATEMENT
(Figures in 5 millions)
Net sales
Cost of goods sold
Other expenses
Depreciation
Earnings before interest and taxes (EBIT)
Interest expense
Income before tax
Taxes (at 21%)
Net income
Dividends
Assets
Cash and marketable securities
Receivables
Inventories
Other current assets
Total current assets.
BALANCE SHEET
(Figures in $ millions)
Net property, plant, and equipment
Other long-term assets
$ 12,600
3,760
4,127
2,338
$ 2,375
655
Total assets
Liabilities and shareholders' equity
Payables
Short-term debt
$1,720
361
$ 1,359
$816
Other current liabilities
Total current liabilities
Long-term debt and leases
Other long-term liabilities
Shareholders' equity
Total liabilities and shareholders' equity
End of Year Start of Year
$ 152
2,370
208
902
$ 3,632
19,855
3,710
$ 27,197
$83
2,082
157
837
$ 3,159
19,913
4,156
$ 27,228
$ 2,504
1,389
781
$ 4,674
8,512
6,118
7,924
$ 27,228
$ 2,980
1,543
757
$5,280
7,907
6,089
7,921
$ 27,197
Calculate the following…
Chapter 2 Solutions
Financial Accounting
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Ch. 2 - Prob. 11QCh. 2 - Prob. 12QCh. 2 - (a) What is the primary objective of financial...Ch. 2 - Prob. 14QCh. 2 - Prob. 15QCh. 2 - Prob. 16QCh. 2 - Prob. 17QCh. 2 - Prob. 18QCh. 2 - What is the economic entity assumption? Give an...Ch. 2 - Prob. 20QCh. 2 - The following are the major balance sheet...Ch. 2 - Prob. 2.2BECh. 2 - BE2-3 The following information (in millions of...Ch. 2 - Prob. 2.4BECh. 2 - Prob. 2.5BECh. 2 - Prob. 2.6BECh. 2 - Prob. 2.7BECh. 2 - Prob. 2.8BECh. 2 - Prob. 2.9BECh. 2 - Here are some qualitative characteristics of...Ch. 2 - Prob. 2.11BECh. 2 - Prob. 2.1DIRCh. 2 - Prob. 2.2DIRCh. 2 - Prob. 2.3DIRCh. 2 - The following characteristics, assumptions,...Ch. 2 - Prob. 2.1ECh. 2 - The major balance sheet classifications are listed...Ch. 2 - E2-3 Suppose the following items were taken from...Ch. 2 - E2-4 Suppose the following information (in...Ch. 2 - Prob. 2.5ECh. 2 - Prob. 2.6ECh. 2 - Prob. 2.7ECh. 2 - E2-8 These financial statement items are for...Ch. 2 - Nordstrom, Inc. operates department stores in...Ch. 2 - Prob. 2.10ECh. 2 - Prob. 2.11ECh. 2 - Prob. 2.12ECh. 2 - Prob. 2.13ECh. 2 - Prob. 2.1APCh. 2 - Prob. 2.2APCh. 2 - Prob. 2.3APCh. 2 - Prob. 2.4APCh. 2 - P2-5A Here and on page 84 are financial statements...Ch. 2 - Prob. 2.6APCh. 2 - Prob. 2.7APCh. 2 - Prob. 2.8APCh. 2 - P2-1B Suppose the following items are taken from...Ch. 2 - Prob. 2.2BPCh. 2 - Prob. 2.3BPCh. 2 - Prob. 2.4BPCh. 2 - Prob. 2.5BPCh. 2 - Prob. 2.6BPCh. 2 - Prob. 2.7BPCh. 2 - Prob. 2.8BPCh. 2 - Prob. 2.1BYPCh. 2 - Prob. 2.2BYPCh. 2 - Prob. 2.4BYPCh. 2 - Prob. 2.3BYPCh. 2 - Prob. 2.7BYPCh. 2 - Prob. 2.8BYPCh. 2 - ETHICS CASE At one time, Boeing closed a giant...Ch. 2 - In what ways does the format of a statement of...Ch. 2 - Prob. 2.2IFRSCh. 2 - IFRS2-3 What terms commonly used under IFRS are...Ch. 2 - Prob. 2.4IFRSCh. 2 - Prob. 2.5IFRSCh. 2 - Prob. 2.6IFRSCh. 2 - Prob. 2.7IFRSCh. 2 - Prob. 2.8IFRS
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