Compute working capital and the current ratio at the

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Reference no: EM13572787

Nordstrom, Inc. operates department stores in numerous states. Selected financial statement data (in millions of dollars) for the year ended January 31, 2009, follow


End of Year

Beginning of Year

Cash and cash equivalents

$72

$358

Receivables (net)

1,942

1,788

Merchandise inventory

900

956

Other current assets

303

259

Total current assets

$3,217

$3,361

Total current liabilities

$1,601

$1,635

Instructions

(a) Compute working capital and the current ratio at the beginning of the year and at the end of the current 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.

Reference no: EM13572787

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