Question & Answer: Nordstrom, Inc. operates department stores in numerous states. Selected financial statement data (in millions of dollars) for a recent year…..

Exercise 2-9

Nordstrom, Inc. operates department stores in numerous states. Selected financial statement data (in millions of dollars) for a recent year 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


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Compute working capital and the current ratio at the beginning of the year and at the end of the year. (Round current ratio to 2 decimal places, e.g. 15.25.)

	End of Year		Beginning of Year
Working capital	$		$
Current ratio		:1		:1

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Did Nordstrom’s liquidity improve or worsen during the year? ImproveWorsen

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Please find below the answer and please give thumbs up
Statementshowing Computations
Paticulars	End of Year	Beginning of year
Total current assets	3,217.00	3,361.00
Total current liabilities	1,601.00	1,635.00
Working Capital = CA – CL	1,616.00	1,726.00
Current Ratio = CA / CL	2.01	2.06


Liquidity worsen during the year since Current ratio declined from 2.06 to 2.01

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