ntory turnover e the effect of the 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. Exercise (in millions) 2014 2013 Inventories (LIFO) $ 2,397 $3,042 30,857 12,753 1,367 16,255 Current assets Current liabilities LIFO reserve 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.

ntory turnover e the effect of the 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. Exercise (in millions) 2014 2013 Inventories (LIFO) $ 2,397 $3,042 30,857 12,753 1,367 16,255 Current assets Current liabilities LIFO reserve 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.

Name: E6-11 complete a. and b. only. Ignore part c. in the book, and substi
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Description: E6-11 complete a. and b. only. Ignore part c. in the book, and substitute the following for part c.and a new part d.:c. Assume that the LIFO reserve last year (2013) was $1,219. What would Cost of Goods Soldbe for 2014 under FIFO?d. Assume sales are

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter9: Metric-analysis Of Financial Statements

Section: Chapter Questions

Problem 9.2.2P

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