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:
Total
Less than 1 year
2&3 years
4&5 years
More than 5 years
Debt
Equipment operations
$ 2,061
$???130
$??321
$1,610
Financial services
19,598
8,515
7,025
$3,003
1,055
Total
21,659
8,645
7,346
3,003
2,665
Interest on debt
3,857
941
1,102
557
1,257
Purchase obligations
3,212
3,172
26
9
5
Operating leases
358
100
120
58
80
Capital leases
29
3
6
4
16
Total
$29,115
$12,861
$8,600
$3,631
$4,023
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.
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:
|
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. |
