Presented below is the SEC-mandated disclosure of contractual obligations provided by Deere & Company in a recent

Question:

Presented below is the SEC-mandated disclosure of contractual obligations provided by Deere & Company in a recent annual report. Deere & Company reported current assets of $50,060 and total current liabilities of $21,394 at year-end. (All dollars are in millions.)

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Instructions

a. Compute Deere & Company?s working capital and current ratio (current assets ? current liabilities) with and without the off -balance-sheet contractual obligations reported in the schedule.

b. Briefly discuss how the information provided in the contractual obligation disclosure would be useful in evaluating Deere & Company for loans (1) due in one year and (2) due in five years.

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Intermediate Accounting

ISBN: 978-1119503668

17th edition

Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfiel

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