(ACC 560 Week 10 Assignment) Nordstrom, Inc. operates department stores in numerous states

ACC 560 Week 10 Assignment

E14-5 Nordstrom, Inc. operates department stores in numerous states. Selected financial statement data for the year ending January 29, 2005, are as follows.

NORDSTROM, INC.
Balance Sheet (partial)
(in millions) End-of-Year Beginning-of-Year

Cash and cash equivalents $ 361 $ 340
Receivables (less allowance of 19 and 20) 646 667
Merchandise inventory 917 902
Prepaid expenses 53 46
Other current assets 595 570
Total current assets $2,572 $2,525
Total current liabilities $1,341 $1,123

For the year, net sales were $7,131, and cost of goods sold was $4,559 (in millions).

Instructions
(a) Compute the four liquidity ratios at the end of the year.
(b) Using the data in the chapter, compare Nordstrom’s liquidity with (1) that of J.C. Penney Company, and (2) the industry averages for department stores.


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For its fiscal year ending October 31, 2008, Molini Corporation reports the following partial data (ACC 560 Week 10 Assignment)

ACC 560 Week 10 Assignment

E14-12 For its fiscal year ending October 31, 2008, Molini Corporation reports the following partial data.

Income before income taxes $540,000
Income tax expense (30% $390,000) 117,000
Income before extraordinary items 423,000
Extraordinary loss from flood 150,000
Net income $273,000

The flood loss is considered an extraordinary item. The income tax rate is 30% on all items.

Instructions
a) Prepare a correct income statement, beginning with income before income taxes.
b) Explain in memo form why Molini's reported income statement data are incorrect


Click here for the solution: For its fiscal year ending October 31, 2008, Molini Corporation reports the following partial data (ACC 560 Week 10 Assignment)