Prior to beginning work on this discussion, review the liability section in the quarterly balance...

Question

Prior to beginning work on this discussion, review the liability section in the quarterly balance sheet in the “News Release and Financials” document for Deere & Company you downloaded in Week 1.

Compare the liability section of the balance sheet to the equity section, and discuss whether the relationship of debt to equity is appropriate for the company. Explain whether the debt-to-equity relationship has changed from the previous year, and assess why financial managers should track this relationship over time.

Kushal · Accepted Answer

As we can see from the Liabilities section,  the major accounts which create the liabilities of the company are related to the operational side where the favorable terms with the suppliers and the vendors allow us to pay for the raw materials a bit late and credit has been provided. Apart from this, we see significant financing from the debt side, both short term and long term debt.

Prior to beginning work on this discussion, review the liability section in the quarterly balance sheet in the “News Release and Financials” document for Deere & Company you downloaded in Week 1....

Solution

Answer To This Question Is Available To Download

Related Questions & Answers

Submit New Assignment