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

Question
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

Image Transcription

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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