Company: Nordstrom

You can use any year, but no earlier than 2010 fiscal year for your analysis work. You are going to answer specific questions based on these reports. The format of your answers and analysis does not have to be in any specific form, but it should be typed so it is legible and you want to compose your words and sentence structure in as good a form as you can
1. Who is the auditor of the report? Name some of the officers of the company? Where did you find the latter information? Is management responsible for the financial statements and, if so, how do you know?

2. Did the company report their financials using US GAAP or IFRS? Are there any exceptions to GAAP and, if so, did the auditor mention these in their audit report or just the footnotes.

3. Is it a consolidated report and, if yes, what companies are reported on in the consolidation? Also, are there any noncontrolling interest in the consolidation? How did you find this out? Are there two ways to find this? If yes, what are the two ways?

4. In management’s discussion of their operating results did they mention any ratios from their financials and, if so, name some of the ones they referred to. Did they compare themselves to industry averages?

5. Using the notes to the financials, describe the terms of any one of the loans payable that the company has. You want to mention the interest rate of the loan, the term, does it balloon, is it in default, and name the loan so I will know which one you are talking about.

6. Using the notes to the statements, describe held for sale investments that the company may have and, if so, how are they being accounted for. Use what you learned in class to answer rather than just copying the language in the footnote. Are any investments being accounted for using the equity method? Why did the accountants choose the equity method for those specific investments?

7. Are there any capitalized lease on the balance sheet? How do you know?

8. What did management discuss in their report about business risks for the company? What is their assessment of those risks on how the company will be up to the challenges of these risks>?

9. What do the financial statements mention regarding risks of the company?

10. Do a ratio analysis as follows:

a. Pick put three ratios for the balance sheet and the income statement. Calculate those and give me your results. Then discuss what these mean to you about the business. You should be sure to mention what other information you would want to know or ask about given the results of these ratios. This is because ratios alone do not tell you without a doubt what’s going on with the company. They give you a relative idea, nothing absolutely concrete (expect in rare circumstances).
b. Find and report on the earnings per share was? Is there any treasury stock and, if so, how much?

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1. Deloitte & Touche LLP is the auditor of the company. Following are the name of few officers of the company.

- Blake W. Nordstrom (President)
- Michael G. Koppel (Principal Financial Officer)
- James A. Howell (Vice President, Finance)
- Phyllis J. Campbell (Director)
- Michelle M. Ebanks (Director)
- Enrique Hernandez Jr. (Director)
- Robert G. Miller (Director)

Yes, the Management of the company is primarily responsible for the preparation and presentation of financial statements of the company. This can be evident from Independent Auditor’s Report (Page 35 – paragraph 1) and Management’s report on Internal Control over Financial Reporting (page 62 of the Annual Report).

2. The company reports their financial statements using US GAAP (Page 40 – Use of Estimates). The company not complied with Accounting Standards update No. 2011-11, Disclosure about Offsetting Assets and Liabilities. This fact has been reported on the footnote of the financial statements. The auditors have not mentioned this in their report and report of the auditors in unqualified....
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