Nordstrom Inc

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Nordstrom, Inc. operates department stores in numerous states. Selected financial
statement data for the year ending January 30, 2010, are shown below.

Nordstrom, Inc.
Balance Sheet (Partial)
(In millions)	End of Year	Beg. Of Year
Cash and cash equivalents	795	72
Accounts receivable (net)	2,035	1,942
Merchandise 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 liquidity ratios at the end of the year. (Round ratios to 2 decimal places
eg 10.57:1 and turnovers to 1 decimal place, eg 10.5.)

b) Using the data in the chapter, compare Nordstrom's liquidity with (1) that of Jc Penny &
(2) the industry averages for department stores (Round ratios to 2 decimal place

Nordstrom is ________ JC Penney for the current & acid test ratios and the receivables
turnover. Nordstrom is _____ than JC Penney for inventory turnover.

Nordstrom is ______ than the industry average for the current and acid test ratio,
but ___ the industry average receivables turnover and the inventory turnover ratios.