Question

Do some research to find the 2018 balance sheets for Macy’s and Nordstrom online. For each company, navigate to the company’s website, then scroll down to investors or investor relations, 2018 annual report, and locate their 2018 balance sheet.

Identify and describe the company’s three most significant accounts in the following areas:

• Current assets
• Long-term asset
• Current liabilities
• Long-term liabilities
• Stockholders’ equity

How do these two retailer’s balance sheets compare? Which company do you feel is healthier?

Answer 1

https://content-az.equisolve.net/_24d8525324bb40d6d641903043f86581/macysinc/db/490/5363/file/4Q-2018+Balance+Sheet.pdf

https://press.nordstrom.com/static-files/7ec12efb-df9b-4993-a59f-44580dec8ba2

(Page#39)^^^

MACY’S, most significant accounts in the following

*Current assets>>

Cash and cash equivalents

Merchandise inventories

Prepaid expenses and other current assets

*Long-term asset>>

Property and Equipment

Goodwill

Other Assets

*Current liabilities>>

Merchandise accounts payable

Accounts payable and accrued liabilities

Income taxes

*Long-term liabilities>>

Long-Term Debt

Deferred Income Taxes

Other Liabilities

*Stockholders’ equity>>

Macy's, Inc.

Noncontrolling interest

Nordstrom, Inc, most significant accounts in the following areas:

*Current assets>>

Cash and cash equivalents

Merchandise inventories

Prepaid expenses and other

*Long-term asset>>

Land, property and equipment,  

Goodwill

Other assets

*Current liabilities>>

Accounts payable Accrued salaries, wages and related benefits Other current liabilities

*Long-term liabilities>>

Deferred property incentives,  

Other liabilities

*Stockholders’ equity>>

Common Stock

Accumulated deficit

Accumulated other comprehensive loss

Summary>

On comparing balance sheet of these two companies found that Macy's is healthier as it has good solvency and liquidity ratios as compared to the peer company.