Nordstrom, Inc. operates department stores in numerous states. Suppose selected financial statement data (in millions) for 2020 are presented below.End of YearBeginning of Year$730$65Cash and cash equivalentsAccounts receivable (net)1,9001,800Inventory800810370425Other current assets$3,800$3,100Total current assets$1,990$1,590Total current liabilitiesFor the year, net credit sales were $8,258 million, cost of goods sold was $5,328 million, and net cash provided by operating activities was $1,251 million.Compute the current ratio, accounts receivable turnover, average collection period, inventory turnover and days in inventory at the end of the currentyear. (Round current ratio to 2 decimal places, e.g. 1.83 and all other answers to 1 decimal place, e.g. 1.8. Use 365 days for calculation.)Current ratio:1Accounts receivable turnovertimesAverage collection perioddaysInventory turnovertimesDays in inventorydays

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Asked Dec 1, 2019
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Nordstrom, Inc. operates department stores in numerous states. Suppose selected financial statement data (in millions) for 2020 are presented below.
End of Year
Beginning of Year
$730
$65
Cash and cash equivalents
Accounts receivable (net)
1,900
1,800
Inventory
800
810
370
425
Other current assets
$3,800
$3,100
Total current assets
$1,990
$1,590
Total current liabilities
For the year, net credit sales were $8,258 million, cost of goods sold was $5,328 million, and net cash provided by operating activities was $1,251 million.
Compute the current ratio, accounts receivable turnover, average collection period, inventory turnover and days in inventory at the end of the current
year. (Round current ratio to 2 decimal places, e.g. 1.83 and all other answers to 1 decimal place, e.g. 1.8. Use 365 days for calculation.)
Current ratio
:1
Accounts receivable turnover
times
Average collection period
days
Inventory turnover
times
Days in inventory
days
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Nordstrom, Inc. operates department stores in numerous states. Suppose selected financial statement data (in millions) for 2020 are presented below. End of Year Beginning of Year $730 $65 Cash and cash equivalents Accounts receivable (net) 1,900 1,800 Inventory 800 810 370 425 Other current assets $3,800 $3,100 Total current assets $1,990 $1,590 Total current liabilities For the year, net credit sales were $8,258 million, cost of goods sold was $5,328 million, and net cash provided by operating activities was $1,251 million. Compute the current ratio, accounts receivable turnover, average collection period, inventory turnover and days in inventory at the end of the current year. (Round current ratio to 2 decimal places, e.g. 1.83 and all other answers to 1 decimal place, e.g. 1.8. Use 365 days for calculation.) Current ratio :1 Accounts receivable turnover times Average collection period days Inventory turnover times Days in inventory days

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Expert Answer

Step 1

Compute the current ratio, accounts receivable turnover, average collection period...

Current ratio
Accounts receivable turnover|
Averaged collection period
Inventory turnover
Days in Inventory
1.91:1
4.5 Times
81.1 Days
6.6 Times
55.3 Days
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Current ratio Accounts receivable turnover| Averaged collection period Inventory turnover Days in Inventory 1.91:1 4.5 Times 81.1 Days 6.6 Times 55.3 Days

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