Reference no: EM131769387

Question - Nordstrom, Inc. operates department store in numerous states. Selected financial statement data for the year ending January 31, 2009 are shown below.

NORDSTROM, INC. Balance Sheet (partial)
(in millions)	End-of-Year	Beginning-of-Year
Cash and cash equivalents	$72	$358
Accounts receivable (net)	1,942	1,788
Merchandise inventory	900	956
Prepaid expenses	93	78
Other current assets	210	181
Total current assets	$3,217	$3,361
Total current liabilities	$1,601	$1,635

For the year, net credit sales were $8,272, and cost of goods sold was $5,417 (in millions).

Instructions -

(a) Compute the four liquidity ratios at the end of the year.

(b) Using the data in the chapter, compare Nordstrom's liquidity with (1) that of J.C. Penney Company, and (2) the industry averages for department stores.