Question: ( Related to Checkpoint 1 8 . 1 ) ( Measuring firm liquidity ) The following table contains current asset and current liability balances for
Related to Checkpoint Measuring firm liquidity The following table contains current asset and current liability balances for Deere and Company DE:
a Measure the liquidity of Deere & for each year using the company's net working capital and current ratio.
b Is the trend in Deere's liquidity improving over this period?
a The company's net working capital for is $Enter your answer in thousands of dollars.
The company's current ratio for is
Round to two decimal places.
The company's net working capital for is $Enter your answer in thousands of dollars.
The company's current ratio for is Round to two decimal places.
The company's net working capital for is $Enter your answer in thousands of dollars.
The company's current ratio for is Round to two decimal places.
b Is the trend in Deere's liquidity improving over this period? Select the best choice below.
A Yes, the firm's net working capital remains negative throughout the years and the current ratio is consistently less than one.
B No the firm's net working capital remains negative throughout the years and the current ratio is consistently less than one.
C No the firm's net working capital remains positive throughout the years and the current ratio is consistently higher than one.
D Yes, the firm's net working capital remains positive throughout the years and the current ratio is consistently higher than one.
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