Nordstrom, Inc. operates department stores in numerous states. Selected hypothetical financial statement data (in millions) for 2022 are presented below. End of Year Beginning of Year Cash and cash equivalents $ 1,289 $ 126 Accounts receivable (net) 3,600 3,400 Inventory 1,600 1,600 Other current assets 571 531 Total current assets $7,060 $5,657 Total current liabilities $3,530 $2,802 For the year, net credit sales were $14,350 million, cost of goods sold was $9,280 million, and net cash provided by operating activities was $1,256 million. Compute the current ratio, accounts receivable turnover, average collection period, inventory turnover, and days in inventory for the current year. (Round Current ratio to 2 decimal places, e.g. 1.62 and all other answers to 1 decimal place, e.g. 1.6.) Current ratio enter the ratio rounded to 2 decimal places :1 Accounts receivable turnover enter a number of times rounded to 1 decimal place times Average collection period enter a number of days rounded to 1 decimal place days Inventory turnover enter a number of times rounded to 1 decimal place times Days in inventory enter a number of days rounded to 1 decimal place days

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

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Nordstrom, Inc. operates department stores in numerous states. Selected hypothetical financial statement data (in millions) for 2022 are presented below.

	End of Year		Beginning of Year
Cash and cash equivalents		$ 1,289		$ 126
Accounts receivable (net)		3,600		3,400
Inventory		1,600		1,600
Other current assets		571		531
Total current assets		$7,060		$5,657
Total current liabilities		$3,530		$2,802

For the year, net credit sales were $14,350 million, cost of goods sold was $9,280 million, and net cash provided by operating activities was $1,256 million.

Compute the current ratio, accounts receivable turnover, average collection period, inventory turnover, and days in inventory for the current year. (Round Current ratio to 2 decimal places, e.g. 1.62 and all other answers to 1 decimal place, e.g. 1.6.)

Current ratio	enter the ratio rounded to 2 decimal places	:1
Accounts receivable turnover	enter a number of times rounded to 1 decimal place	times
Average collection period	enter a number of days rounded to 1 decimal place	days
Inventory turnover	enter a number of times rounded to 1 decimal place	times
Days in inventory	enter a number of days rounded to 1 decimal place	days

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