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Economics /Management 4 Financial Accounting - Fall 2014 Week 3

Economics /Management 4 Financial Accounting - Fall 2014 Week 3. Nordstrom’s Financial Reporting. The Context. Includes 689 in Rent. Income Statement: 3 months ending August 2, 2014 Net Sales 3,392 $ 1.00 COS (2,130) Gross Profit 1,262 37.2 ¢ G&A ( 687)

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Economics /Management 4 Financial Accounting - Fall 2014 Week 3

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  1. Economics /Management 4Financial Accounting - Fall 2014Week 3 Nordstrom’s Financial Reporting

  2. The Context

  3. Includes 689 in Rent Income Statement: 3 months ending August 2, 2014 Net Sales 3,392 $ 1.00 COS (2,130) Gross Profit 1,262 37.2 ¢ G&A ( 687) EBITDA 575 17.0 ¢ Depreciation ( 244) see the SCF EBIT 331 9.8 ¢ Interest ( 35) EBT 296 8.7 ¢ Taxes ( 113) Net Income 183 million 5.4 ¢

  4. Results • For each Dollar spent 5.4¢ reaches the bottom line profits, i.e. belongs to Shareholders. • Shareholders earned $ 183 million dollars in profits over ninety days. • There are 189 million share of stock, so that’s about 97 ¢ per share, called EPS, known on The Street as The “Number”. • Nordstrom reported $ 369 million in cash flow from operations for those 90 days.

  5. Profits versus Profitability Profits NPM EPS Nordstrom $ 183MM 5.4% $ 0.97 Walmart $ 4,093MM 3.4% $1.21

  6. Condensed Balance Sheet Template Cash Receivables Inventory Pre Paid Expenses Long-lived Assets Accum. Depreciation Customer Advances Payables Accrued expenses Loans Paid in Capital Retained earnings

  7. Balance Sheet 772 2,454 1,804 96 7,783 ( 4,587) Merely a representation of the numbers matching accounts listed on our template. Thus, this will not balance. 0 1,529 358 3,111 1,958 179

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