Nordstrom, the Seattle-based department store, had the following income statement for the year ended January 28, 2012

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Nordstrom, the Seattle-based department store, had the following income statement for the year ended January 28, 2012 (in millions):

The company’s net cash provided by operating activities (slightly modified), prepared using the indirect method, was as follows:

Net earnings …………………………………………… $ 683

Adjustments to reconcile net earnings to net cash provided by operating activities

Depreciation and amortization expenses …………………. 371

Other noncash expenses …………………………………. 117

Changes in

Accounts receivable ……………………………………… (98)

Merchandise inventories ……………………………….. (137)

Accounts payable ………………………………………….. 54

Accrued salaries, wages, and related benefits ………………. 6

Income taxes payable ……………………………………… (12)

Other liabilities …………………………………………….. 193

Net cash provided by operating activities ……………… $1,177

Prepare a statement showing the net cash provided by operating activities using the direct method.

Assume that depreciation and amortization expenses, other noncash expenses, accrued salaries, wages, and related benefits, and other liabilities relate to selling, general, and administrative expenses.
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Introduction to Management Accounting

ISBN: 978-0133058789

16th edition

Authors: Charles Horngren, Gary Sundem, Jeff Schatzberg, Dave Burgsta

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