FINANCIAL ACCOUNTING>IC<
15th Edition
ISBN: 9781119344988
Author: Kimmel
Publisher: WILEY C
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Textbook Question
Chapter 2, Problem 2.9E
Nordstrom, Inc. operates department stores in numerous states. Selected financial statement data (in millions of dollars) for a recent year follow.
Instructions
- (a) Compute
working capital and thecurrent ratio at the beginning of the year and at the end of the year. - (b) Did Nordstrom’s liquidity improve or worsen during the year?
- (c) Using the data in the chapter, compare Nordstrom's liquidity with Best Buy’s (see page 53).
Page 55:
Current ratio:
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You have just been hired as a financial analyst for Lydex Company, a manufacturer of safety helmets. Your boss has asked you to perform a comprehensive analysis of the company’s financial statements, including comparing Lydex’s performance to its major competitors. The company’s financial statements for the last two years are as follows:
Lydex CompanyComparative Balance Sheet
This Year
Last Year
Assets
Current assets:
Cash
$
1,010,000
$
1,250,000
Marketable securities
0
300,000
Accounts receivable, net
2,900,000
2,000,000
Inventory
3,650,000
2,000,000
Prepaid expenses
270,000
210,000
Total current assets
7,830,000
5,760,000
Plant and equipment, net
9,620,000
9,100,000
Total assets
$
17,450,000
$…
You have just been hired as a financial analyst for Lydex Company, a manufacturer of safety helmets. Your boss has asked you to perform a comprehensive analysis of the company’s financial statements, including comparing Lydex’s performance to its major competitors. The company’s financial statements for the last two years are as follows:
Lydex CompanyComparative Balance Sheet
This Year
Last Year
Assets
Current assets:
Cash
$ 960,000
$ 1,260,000
Marketable securities
0
300,000
Accounts receivable, net
2,700,000
1,800,000
Inventory
3,900,000
2,400,000
Prepaid expenses
240,000
180,000
Total current assets
7,800,000
5,940,000
Plant and equipment, net
9,300,000
8,940,000
Total assets
$ 17,100,000
$ 14,880,000
Liabilities and Stockholders' Equity
Liabilities:
Current liabilities
$ 3,900,000
$ 2,760,000
Note payable, 10%
3,600,000
3,000,000
Total liabilities
7,500,000
5,760,000
Stockholders' equity:
Common stock, $78 par value…
You have just been hired as a financial analyst for Lydex Company, a manufacturer of safety helmets. Your boss has asked you to perform a comprehensive analysis of the company’s financial statements, including comparing Lydex’s performance to its major competitors. The company’s financial statements for the last two years are as follows:
Lydex CompanyComparative Balance Sheet
This Year
Last Year
Assets
Current assets:
Cash
$ 980,000
$ 1,220,000
Marketable securities
0
300,000
Accounts receivable, net
2,780,000
1,880,000
Inventory
3,620,000
2,200,000
Prepaid expenses
260,000
200,000
Total current assets
7,640,000
5,800,000
Plant and equipment, net
9,560,000
9,070,000
Total assets
$ 17,200,000
$ 14,870,000
Liabilities and Stockholders' Equity
Liabilities:
Current liabilities
$ 4,030,000
$ 3,020,000
Note payable, 10%
3,680,000
3,080,000
Total liabilities
7,710,000
6,100,000
Stockholders' equity:
Common stock, $75 par value…
Chapter 2 Solutions
FINANCIAL ACCOUNTING>IC<
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