Exercise 13-8 Solvency Analyses for Nordstrom, Inc. The following information

Exercise 13-8 Solvency Analyses for Nordstrom, Inc.The following information was obtained from the comparative financial statements included inNordstrom’s Form 10-K for its 2011 fiscal year. (All amounts are in millions of dollars.)January 28, 2012January 29, 2011Total assets$8,491$7,462Total shareholders’ equity1,9562,021For the Years Ended.transtutors.com/qimg/71ca62c8-8975-4c9f-a150-0f372eedfc0b.png”>January 28, 2012 January 29, 2011Interest expense, netCash paid during the year for interest$ 130$ 127(net of capitalized interest)124121Income tax expense436378Cash paid during the year for income taxes398381Net earnings683613Net cash provided by operating activities1,1771,177Cash dividends paid197167Capital expenditures511399Principal payments on long-term borrowings6356Exercises 709Required1. Using the information provided, compute the following for the years ended January 28, 2012, and January 29, 2011:a. Debt-to-equity ratio (at each year-end)b. Times interest earned ratioc. Debt service coverage ratiod. Cash flow from operations to capital expenditures ratio2. Comment briefly on the company’s solvency.