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Cornerstones of Financial Accounti...

4th Edition
Jay Rich + 1 other
ISBN: 9781337690881

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BuyFindarrow_forward

Cornerstones of Financial Accounti...

4th Edition
Jay Rich + 1 other
ISBN: 9781337690881
Textbook Problem
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Research and Analysis Using the Annual Report

Obtain John Deere’s 2016 annual report either through the “Investor Relations” portion of their website (do a web search for John Deere investor relations) or go to www.sec.gov and click “Company Filings Search” under “Filings."

Required:

1. What method of computing net cash flow from operating activities did John Deere use?

To determine

In the indirect method, you alter net gain to change over it from an accumulation to a cash premise. This expects you to include back non-cash costs, for example, devaluation, amortization, misfortune arrangement for records receivable and any misfortunes on the clearance of a fixed resource.

To discuss:

What method of computing net cash flow from operating activities did Company use?

Explanation

In the company the Indirect method use for the preparing the cash flow statement. Because this question starts from the net income and added in non-cash expense or non-operating like depreciation and loss on sale of assets...

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