The following information comes from the balance sheet of Nordstrom, Inc.:

1. Calculate the debt-to-equity ratio for the years shown.
2. Who would be interested in this information and why?
3. Suppose you were considering investing in some stock. What do you think of the change in this ratio from one year to the next?
4. If Nordstrom, Inc., has bonds payable, where do you think they might be included on the balance sheet?
5. What risks are associated with the long-term debt on Nordstrom€™s balancesheet?

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Nordstrom, Inc. Consolidated Balance Sheets (partial) (in millions January 3 February 2008 2009 Liabilities and Shareholders' Equity Current liabilities: Commercial paper... 27 串556 268 550 261 1,635 2,236 369 245 Accounts payable. 563 214 525 24 1,601 2,214 435 201 Accrued salaries, wages and related benefits . Other current liabilities Current portion of long-term debt Total current liabilities Long-term debt, net Deferred property incentives, net .. Other liabilities . . Commitments and contingencies Shareholders equity: Common stock, no par value: 1,000 shares authorized; 997 223 10 1,210 .$,661 216.4 and 220.9 shares issued and outstanding Retained earnings.. Accumulated other comprehensive loss 936 201 Total shareholders' equity Total liabilities and shareholders' equity 1,115 $5,600