Solution-Compute the four liquidity ratios at the end of

Compute the four liquidity ratios at the end of the year

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Reference no: EM131812309

Exercise -

Suppose Nordstrom, Inc., which operates department stores in numerous states, has the following selected financial statement data for the year ending January 30, 2014.

NORDSTORM, INC. Balance Sheet (partial)
(in millions)	End-of-Year	Beginning-of-Year
Cash and cash equivalents	$ 1,352	$ 122
Accounts receivable (net)	3,460	3,301
Inventory	1,527	1,530
Prepaid expenses	150	158
Other current assets	405	357
Total current assets	$6,894	$5,468
Total current liabilities	$3,424	$2,722

For the year, net sales were $14,039 and cost of goods sold was $9,058 (in millions).

(a) Compute the four liquidity ratios at the end of the year. (Round answers to 1 decimal place, e.g. 1.6 .)

Current ratio		2.01:1
Acid-test ratio		1.40:1
Accounts receivable turnover		times
Inventory turnover		times

Reference no: EM131812309

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Compute the four liquidity ratios at the end of the year

Reference no: EM131812309

Reference no: EM131812309

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