Read Chapter 6: Working Capital and the Financial Decision in your textbook
Prior to beginning work on this discussion, read Chapter 6: Working Capital and the Financial Decision in your textbook, and review the quarterly “News Release and Financials” financial statement for Deere & Company you downloaded in the Week 1 Analyzing the Statement of Cash Flows discussion from the web page Investor Relations (Links to an external site.).
Investigate the short-term and long-term liabilities of Deere & Company, based on the quarterly financial statement. Calculate the working capital for the quarter.
Explain whether there are any issues Deere & Company should address in the liability section of the balance sheet. Then, explain how increasing interest rates would impact this company.
There are many challenges when it comes to global strategic plans for businesses. One involves international cash management, due to the risk of currency fluctuations and interest rate changes in the global market. Review the quarterly financial statements for Deere & Company from Investor Relations (Links to an external site.) and locate the discussions about fluctuations and risk in interest rates or foreign exchange rates. Then, address the following:
• Indicate whether the foreign exchange translation has increased or decreased profitability for this quarter.
• Explain strategies a company might use to reduce the risk associated with foreign exchange fluctuations.
• Interpret the impact of foreign currency translation on profitability for Deere & Company.
Answer preview to read Chapter 6: Working Capital and the Financial Decision in your textbook