Deere & Company is a global manufacturer and distributor of agricultural, construction, and forestry equipment. Suppose it reported the following information in its 2022 annual report. 

Instructions

a. Compute Deere’s inventory turnover and days in inventory for 2022. 

b. Compute Deere’s current ratio using the 2022 data as presented, and then again after adjusting for the LIFO reserve. 

c. Comment on how ignoring the LIFO reserve might aff ect your evaluation of Deere’s liquidity.

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(in millions) Inventories (LIFO) Current assets Current liabilities LIFO reserve Cost of goods sold 2022 2021 $ 2,397 $3,042 30,857 12,753 1,367 16,255