for 2012, 2013, and 2014.ent on any iventory turnoverne the effect of thee on current ratio.E6-11 Deere & Company is a global manufacturer and distributor of agricultural, con-struction, and forestry equipment. Suppose it reported the following information in its2014 annual report.Exercise(in millions)20142013$ 2,39730,85712,7531,36716,255Inventories (LIFO)$3,042Current assetsCurrent liabilitiesLIFO reserveCost of goods soldInstructions(a) Compute Deere's inventory turnover and days in inventory for 2014.(b) Compute Deere's current ratio using the 2014 data as presented, and then again afteradjusting for the LIFO reserve.(c) Comment on how ignoring the LIFO reserve might affect your evaluation of Deere'sliquidity.

Ratio analysis is a mathematical comparison of financial statement accounts. it establishes…

ventory turnover ne the effect of the e on current ratio. E6-11 Deere & Company is a global manufacturer and distributor of agricultural, con- struction, and forestry equipment. Suppose it reported the following information in its 2014 annual report. Exercis (in millions) 2014 2013 Inventories (LIFO) $ 2,397 $3,042 Current assets Current liabilities LIFO reserve 30,857 12,753 1,367 16,255 Cost of goods sold Instructions (a) Compute Deere's inventory turnover and days in inventory for 2014. (b) Compute Deere's current ratio using the 2014 data as presented, and then again after adjusting for the LIFO reserve. (c) Comment on how ignoring the LIFO reserve might affect your evaluation of Deere's liquidity.

ventory turnover ne the effect of the e on current ratio. E6-11 Deere & Company is a global manufacturer and distributor of agricultural, con- struction, and forestry equipment. Suppose it reported the following information in its 2014 annual report. Exercis (in millions) 2014 2013 Inventories (LIFO) $ 2,397 $3,042 Current assets Current liabilities LIFO reserve 30,857 12,753 1,367 16,255 Cost of goods sold Instructions (a) Compute Deere's inventory turnover and days in inventory for 2014. (b) Compute Deere's current ratio using the 2014 data as presented, and then again after adjusting for the LIFO reserve. (c) Comment on how ignoring the LIFO reserve might affect your evaluation of Deere's liquidity.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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