Exercise 6-11 (Part Level Submission) Deere & Company is a global manufacturer and distributor of agricultural, construction, and forestry equipment. Suppose it reported the following information in its 2014 annual report. 2014 2013 Compute Deere Solution Current Assets          30,584.00 Current Liability          12,841.00 Current Ratio = Current Assets/ Current Liability Current Ratio = 30,584/12,841 Current Ratio = 2.38 when calculating the current ratio, the LIFO reserve should be added back into the numerator of the equation, resulting in a FIFO inventory. Current Ratio = 30,584 + 1,157 Current Ratio = 31,741 Current Ratio = Current Assets/ Current Liability Current Ratio = 31,741/12,841 Current Ratio = 2.47 .

1. Exercise 6-11 (Part Level Submission)
Deere & Company is a global manufacturer and distributor of agricultural, construction, and
forestry equipment. Suppose it reported the following information in its 2014 annual report.
2014
2013
Compute Deere
(in millions) 2014 2013
Inventories (LIFO) $2,342 2,973
Current assets 30,584
Current liabilities 12,841
LIFO reserve 1,157
Cost of goods sold 16,863
Solution
Current Assets         30,584.00 Current Liability         12,841.00
Current Ratio = Current Assets/ Current Liability Current Ratio = 30,584/12,841 Current Ratio =
2.38 when calculating the current ratio, the LIFO reserve should be added back into the
numerator of the equation, resulting in a FIFO inventory. Current Ratio = 30,584 + 1,157 Current
Ratio = 31,741 Current Ratio = Current Assets/ Current Liability Current Ratio = 31,741/12,841
Current Ratio = 2.47