Nordstrom's Financial Statements

Nordstrom is a department store of distinction, with an outstanding corporate reputation, identity and image whose targeted market is a customer of affluence. Nordstrom was founded in 1901 as a small shoe company based in Seattle, Washington, that evolved into a department store in the 1960’s, and as of March 2017 operates 123 Nordstrom Full-line Stores, and 226 Nordstrom Rack stores which sell off price goods. Moreover, the exceptional ingredient that compels customers to stay loyal is Nordstrom’s intentional attention to customer service. Therefore, this organization, viewed the customer as being at the top of the organizational chain and empowered employees to make customer oriented decisions that would serve the consumer making

An income statement reflects the details of revenue and expenses over a defined period of time that’s prepared and adjusted on a monthly basis (Todd & Macy, 2016). Nordstrom’s list the Income Statement as a Consolidated Statement of Earnings that visually reflects three distinct years of revenue and expenses that can be compared. Admittingly, having previous years listed was helpful when comparing numbers from 2014 through 2016. When comparing each year, the numbers demonstrate that they had a 2.2% increase in sales in 2016 compared to 2015, and a 9.3% increase to 2014. However, Net earnings compared from 2016 to 2015 was down 41%, and 2016 to 2014 down 51%. Even though the organization still profited they continue to decrease year after year due to increase expenses. When comparing our textbook example of itemized expense on the income statement, Nordstrom’s grouped expenses into general categories as to protect proprietary information (Hicks,

Two methods are used, direct and indirect as they track where” cash comes from and where it goes.” If one chooses to use the direct method the indirect method must be used, as the direct methods is beneficial in forecasting future cash flow, and indirect method reconciles net income/loss and ending cash balance (Haber, & Wallace, 2017, p.53). Moreover, this statement allows one to access where help is needed. In the case of Nordstrom, they’ve used the indirect method and the largest itemized expense is in the investment activity associated with capital expenditure, this may be associated with buying fixed assets such as land, building or equipment. Additionally, these increases in expenses underscores that in 2016, 5 full line stores, and 27 Nordstrom Rack stores were opened amid most major competitors closing stores and reporting decrease business (Nordstrom, 2017). This organization reflected based on the cash flow statement that the most cash was generated in operating expenses of $1,648, net cash used in investing activities reflected ($791), and net cash used in financing activities ($445) with year-end cash of $1,007(Nordstrom,