a. Measure the liquidity of Deere & Co. for each year using the company’s net working capital and current ratio. b. Is the trend in Deere’s liquidity improving over this period? Why or why not?

(Measuring firm liquidity) The following

table contains current asset and current liability balances for Deere and Company (DE):

($ thousands) 2008 2007 2006

Current assets

Cash and cash equivalents 2,211,400 2,278,600 1,687,500

Short-term investments 0 1,623,300 0

Net receivables 3,944,200 3,680,900 3,508,100

Inventory 3,041,800 2,337,300 1,957,300

Total current assets 9,197,400 9,920,100 7,152,900

Current liabilities

Accounts payable 6,562,800 3,186,100 4,666,300

Short/current long-term debt 8,520,500 9,969,400 8,121,200

Other current liabilities 0 2,766,000 0

Total current liabilities 15,083,300 15,921,500 12,787,500