Exercise 13-07 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 Cash and cash equivalents $ 760 $ 77 Accounts receivable (net) 2,080 1,890 Inventory 830 810 Other current assets 440 433 Total current assets $4,110 $3,210 Total current liabilities $2,100 $1,590 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

See below

Explanation:

Data given

Cash and cash equivalents $760 $77

Accounts receivables net $2,080 $1,890

Inventory $830 $810

Other current assets $440 $433

Total current assets $4,110 $3,210

Total current liabilities $2,100 $1,590

Net credit sales $8,258

Cost of goods sold $5,328

1. Current ratio = Current assets/Current liabilities

= 4,110/2,100

= 1.96

2. Accounts receivable turnover = Credit sales/Average accounts receivables

= 8,258÷ [(2,080+1,890)/2]

= 8,258 ÷ 1,985

= 4.16 times

3. Average collection period = Average accounts receivables/Credit sales × 365 days

= (1,985/8,258) × 365

= 87.7 days

4. Inventory turnover = Cost of goods sold/Average inventory

= 5,328/[830 + 810)/2]

= 5,328/820

= 6.5 times

5. Days in inventory = Average inventory/Cost of goods sold × 365

= (820/5,328) × 365

= 56.2 days

b. a single paragraph.

a paragraph is a series of sentences that are organized and make sense, and are all related to a single topic . almost every piece of writing you do that is longer than a few sentences should be organized into paragraphs. this is because paragraphs show a reader where the subdivisions of an essay begin and end, and thus the reader see the organization of the essay into subjects in order to be able to understand its main points.