ACCT 211 Lecture : chapter 9 Notes (5) 17-18
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Presented below is the SEC-mandated disclosure of contractualobligations provided by Deere & Company in arecent annual report. Deere & Company reported current assetsof $27,208 and total current liabilities of $15,922 at year-end.All dollars are in millions.
Aggregate Contractual Obligations | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
The payment schedule for the company's contractual obligationsat year-end in millions of dollars is as follows:
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Instructions
(a) | Compute Deere & Company's working capital and current ratio(current assets 4 current liabilities) with and without thecontractual obligations reported in the schedule. |
(b) | Briefly discuss how the information provided in the contractualobligation disclosure would be useful in evaluating Deere &Company for loans (1) due in one year and (2) due in fiveyears. |