(Related to Checkpoint 18.1) (Measuring firm liquidity) The following table contains current asset and current liability balances for Deere and Company (DE): 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? a. The company's net working capital for 2011 is $ (Enter your answer in thousands of dollars.)
(Related to Checkpoint 18.1) (Measuring firm liquidity) The following table contains current asset and current liability balances for Deere and Company (DE): 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? a. The company's net working capital for 2011 is $ (Enter your answer in thousands of dollars.)
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Question
Module 7 Question 1 Redo
Transcribed Image Text:(Related to Checkpoint 18.1) (Measuring firm liquidity) The following table contains current asset and current liability balances for Deere and Company (DE):
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?
a. The company's net working capital for 2011 is $
(Enter your answer in thousands of dollars.)
Transcribed Image Text:Data table
($ thousands)
Current assets
Cash and cash equivalents
Short-term investments
Net receivables
Inventory
Total current assets
Current liabilities
Accounts payable
Short-term/current long-term debt
Other current liabilities
Total current liabilities
2013
Print
2,290,400
0
3,949,300
3,016,200
9,255,900
6,546,400
8,560,900
0
15,107,300
2012
Done
2,199,700
1,589,300
3,643,100
2,206,500
9,638,600
(Click on the icon in order to copy its contents into a spreadsheet.)
3,098,300
10,376,400
2,779,700
16,254,400
2011
1,625,400
0
3,584,100
1,935,400
7,144,900
4,611,100
8,114,200
0
12,725,300
X
Expert Solution
Step 1
A quantitative measure employed to evaluate any entity's financial reports and interpret them into useful insights regarding the company's liquidity, solvency, efficiency, and profitability is recognized as ratio analysis. There are multiple ratios computed. The liquidity ratios assess the firm's liquidity positions and the current, quick, and cash ratios are few of the liquidity ratios.
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