Presented below is the SEC-mandated disclosure of contractual obligations provided by Deere & Company in a recent annual report. Deere & Company reported current assets of $27,208 and total current liabilities of $15,922 at year-end. All dollars are in millions.

Instructions(a) Compute Deere & Company??s working capital and current ratio (current assets 4 current liabilities) with and without the contractual obligations reported in the schedule.(b) Briefly discuss how the information provided in the contractual obligation disclosure would be useful in evaluating Deere & Company for loans: (1) due in one year, (2) due in fiveyears.

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Aggregate Contractual Obligations The payment schedule for the company's contractual obligations at year-end in millions of dollars is as follows: Less than More 2&3 485 than 1 year 5 years Total years years Debt Equipment operations Financial Services $ 2,061 19,598 $ 321 7,025 $1,610 1,055 130 8,515 $3,003 Total 21,659 8,645 941 7,346 3,003 2,665 1,257 Interest on debt 3,857 3,212 358 1,102 26 557 3,172 Purchase obligations Operating leases 100 120 58 80 Capital leases 29 3 4 16 $3,631 Total $29.115 $12,861 $8,600 $4,023