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 http://www.sec.gov and click ‘‘Search for company filings’’ under ‘‘Filings & Forms

(EDGAR).’’

Required:

Answer the following questions:

. What method of computing net cash flow from operating activities did John Deere use?

. 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?

. 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.)

. Why was the provision for depreciation and amortization added to net income to compute the net cash provided by operating activities?

. 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?

. What was the amount of cash dividends paid by John Deere for the most current year?

. Are the time commitments of inflows and outflows well matched by John Deere?

. Are debt and equity likely to be available as inflows of cash in the near future?

Case