Question: The following table contains current asset and current liability balances for Deere and Company (DE): a. Measure the liquidity of Deere & Co. for each

The following table contains current asset and current liability balances for Deere and Company (DE):


The following table contains current asset and current liability balances


a. Measure the liquidity of Deere & Co. 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? Why or why not?

S thousands) Current assets Cash and cash equivalents Short-term investments Net receivables Inventory Total current assets 2008 2007 2006 2,211,400 2278,600 1,687,500 1,623,300 3,944,200 3,80,900 3,508,100 3,041,800 2,337300 1,957,30 9,197 400 9920,1007152,900 0 Current liabilities Accounts payable Short-term/current long-term debt Other current liabilities Total current liabilities 6,562,800 3186,100 4,666,300 8,520,500 9,969,400 8,121,200 15,083,300 15,921,500 12,787,500

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a b As was done in Checkpoint 181 in the text we can evaluate Deere Cos liquidity using net working ... View full answer

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