RESEARCH AND ANALYSIS USING THE ANNUAL REPORT
Obtain John Deere's 2007 annual report either through the ‘‘Investor Relations'' portion of their website (do a web search for John Deere investor relations) or go to https://www.sec.gov and click ‘‘Search for company filings'' under ‘‘Filings & Forms (EDGAR).''
Required:
Answer the following questions:
1. What method of computing net cash flow from operating activities did John Deere use?
2. What was the amount of net cash provided by operating activities for the two most current years? What were the most significant adjustments that caused a difference between net income and net cash provided by operating activities?
3. What amount did the company pay for interest during the most current year? For taxes during the most current year? (Hint: You may need to refer to the notes to the financial statements.)
4. Why was the provision for depreciation and amortization added to net income to compute the net cash provided by operating activities?
5. Refer to John Deere's investing and financing activities. What were some of John Deere's significant uses of cash? What were some of John Deere's significant sources of cash?
6. What was the amount of cash dividends paid by John Deere for the most current year?
7. Are the time commitments of inflows and outflows well matched by John Deere?
8. Are debt and equity likely to be available as inflows of cash in the near future?