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(Solved) (Latest ver. Aug 2020) - Nordstrom's liquidity with (1) that of J.C. Penney Company

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Nordstrom Inc. operates department stores in numerous states. Selected financial statement data for the year ending January 29, 2012, are as follows.
NORDSTROM, INC.
Balance Sheet (partial)
(in millions)End-of-Year Beginning-of-Year
Cash and cash equivalents$ 482 $ 369
Receivables (net)679 684
Merchandise inventory1,050 935
Prepaid expenses66 60
Other current assets613 586
Total current assets$2,890 $2,634
Total current liabilities$1,879 $1,449
For the year, net sales were $8,178, and cost of goods sold was $4,612 (in millions
Compute the four liquidity ratios at the end of the year. (Round ratios to 2 decimal place, e.g. 10.57:1 and turnovers to 1 decimal place, e.g. 10.5.)
Current ratio :1

Acid-test ratio :1

Receivables turnover times

Inventory turnover times

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. (Round ratios to 2 decimal place, e.g. 10.57:1 and turnovers to 1 decimal place, e.g. 10.5.)
RatioNordstromJ. C. PenneyIndustry
Current :1
2.02:11.06:1
Acid-test :1
0.87:10.29:1
Receivables turnover :1
57.0:128.2:1
Inventory turnover :1
3.5:17.0:1
Nordstrom is J.C. Penney for the current and acid-test ratios and the receivables turnover. Nordstrom is than J.C. Penney for inventory turnover.
Nordstrom is than the industry average for the current and acid test ratio, but the industry average for receivables turnover and the inventory turnover ratios.

 







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