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Posted on Jul 19, 2024

Questions: Chart: it is the same picture as above. a bit more clear picture. The annual financial statements of Deere & Co. (Symbol: DE) are

Questions: image text in transcribed

Chart:

it is the same picture as above. a bit more clear picture. image text in transcribed

The annual financial statements of Deere & Co. (Symbol: DE) are provided as follows. And DE's weighted average cost of capital is assumed to be 8.25% per year. Use the provided financial statement data to solve the following questions: 1) What shall be the amount (in 5 thousands) of Free Cash Flow (FCF) for Year 20197 2) What shall be the amounts (In S thousands of Economie Value Added (EVA) for Years 2019 and 2018, respectively? 3) What shall be the amounts of % Return on invested Capital (ROIC) for Years 2019 and 2018, respectively? 4) Based on all these above solution outcomes (FCE, EVA, ROIC), have DE's general financial conditions turn better or worse between these two years? Provide a briefing (a few sentences) of critical thinking summary: do NOT simply say: "I think overall It looks better (or worse)." Y2019 VOIR $39,750,000 $26,792,000 $12.466.000 $325,000 $25.571.000 $11.787.000 220 21 22 Annual Balance Sheet 21 Period 24 (All mountain USD thousands 25. Current 20 Cash and Cathfuil 27 Short Term vents 23 Net Recebe 29 tetory 30 Other Current 11 Total Current 32 Long Terme 3 Lang Terms 14 Red Goodwill 10 Intangible 3 other was 3 Deferred the 1 Total 40 Current 41 Pablo 42 Short Term Debt Current Portion of one or 11 Other Ourrent site 44 Torrent biti 45 Lanfermer 4 Other Liabilities 47 Deferred by Charge 4 Mucks 49. Minority interest 10 Total 51 Stockholderiquity 92 Comment 53 Capitaluri sa tinding 55 Trry Stock 56 Other 57 Total Equity 58 Total & Equity 59 60 Deere & Company Common Stock (DE) Financials Annual income Statement Y2019 YOR Perind Indir (All mountare in USD thousands Total Revenue $3,857,000 $3.904,000 Cost oftevenue S1R1,000 $490.000 Gross Profit $40,41,000 $97.38.000 Operating boses $5,875,000 56,149,000 wth and Development 50 50 Sales General and Admin $50,754,000 $45 1.000 onun tema Other Operating $215,000 5207.000 Doring income 51.540,000 SIMON.000 Add incompenses 32.917.000 51,101.000 Earning interest and To 51.110,000 $1,562.000 interest Expense $2.719.000 $1,016,000 Earnings Before 31,466,000 SHO000 income Tax $73,011,000 570, 10000 Mnenty interest ultyanineUncond Subsidiary $10,20,000 $10,796,000 ut income-Contration SIN105,000 $18.019,000 erinama SO so income glicere Commonwealders $25,190,000 $25,815,000 $30, 129,000 $27,237,000 $5.950,000 $1,751.000 50 $0 $4,000 38.000 514.000 $14.000 $69.584,000 $58,806. 51.763,000 55,129.000 50 30 $5,934.000 50 $5,854,000 $1466,000 SA.C,000 $352.000 $21.000 4.000 13,211,000 $3,000 $3,253,000 $1,650,000 S4854,000 50 50 55.275.000 50 55.275,000 $1,204,000 $4,071.000 $1,727,000 $27.000 . 52.110.000 $23,000 $68,000 54,642.000 $29.952.000 1517.44.000 50 155.407.000 $11.413.000 573_011.000 54.474,000 $27,553,000 112.000 50 1564270001 $11,288.000 570,100.000 20 72015 2018 $2,250,000 $25,799,000 $32.465.000 517:151,000 $25.171.000 $1172.000 23 22 Annual Balance Sheet 23 Period Ending 24 ( Amounts are in USD thousands) 25 Current Listiti 25 th and Cashivalents 27 Short Term investments 28 Net Receivables 29 inventory 30 Other Gurrent Ass 31 Total Current Auto 32 Long Term Avis 33 Long-Term Investments 4 ad Ant 35 Goodwill 36 nag bles 37 Others 3 Deferred to Total 40 Current 4 Accounts Payable Sort Term Debt Current Portion of Long Term Dat 4 Other Creatitis Total Current lite A Long Term Debt 45 Other Deferred Liability Charges M. Stacks 4 Minertine 30 foties S1 Stock Holders 52 Common Stocks 53 Capital ending 55 Trry Stock 96 Euny 57 Total ou SN Tabu Deere & Company Common Stock (DE) Financials Annual Income Statement 2019 Y2018 Period End All amounts are in USD thousands) Total Revenue $3857000 $3904000 Cost of ever $51.000 $450.000 Groe Profit S40 44100 $17.000 Operating $5.975.000 56.100.000 Research and Development 50 30 Sales General and Admin $50.254.000 SA000 Non Recurring em Other Operating Items 1215.000 5207.000 Operating some S140,000 $110.000 Adierem $2.917.000 $3,000,000 Earning Belor interest and Tax $ 10.000 $1.562.000 Interest $2,799,000 31.010,000 Emig Bore Tax $164.000 SRO,000 Income Tax $73,011.000 $70.106.000 Minority interest Equity Taninos Uncomodated diary $10,291.000 $10.756.000 Neticecont Operation $15.100.000 $15.000 Net Inc $0 Net Income Applicable to Common Shareholders $25,000 $5315.000 380.239.000 527217.000 $5.95.3.000 551000 30 50 S4.000 $1.000 $14.000 $14.000 $$1.564.000 SSRS DOO 51,761,000 95.120.000 $0 $ SS SS2.000 $0 $5,554.000 $14.000 $4.083.000 $850,000 $20.000 154.000 $125.000 $125.000 $1,251.00 $145.00 54354 000 50 $0 $5.225.000 $0 $5.275.000 $1.204.000 $4.071.000 $1727100 $27.000 152.000 $2.353,300 $216.000 52.00 SAA74000 $21551.000 Hai, 000 54,142,00 SS52.000 15574.000 $0 S000 $111.000 $71.001.000 544270 $112.000 $70,100,000 The annual financial statements of Deere & Co. (Symbol: DE) are provided as follows. And DE's weighted average cost of capital is assumed to be 8.25% per year. Use the provided financial statement data to solve the following questions: 1) What shall be the amount (in 5 thousands) of Free Cash Flow (FCF) for Year 20197 2) What shall be the amounts (In S thousands of Economie Value Added (EVA) for Years 2019 and 2018, respectively? 3) What shall be the amounts of % Return on invested Capital (ROIC) for Years 2019 and 2018, respectively? 4) Based on all these above solution outcomes (FCE, EVA, ROIC), have DE's general financial conditions turn better or worse between these two years? Provide a briefing (a few sentences) of critical thinking summary: do NOT simply say: "I think overall It looks better (or worse)." Y2019 VOIR $39,750,000 $26,792,000 $12.466.000 $325,000 $25.571.000 $11.787.000 220 21 22 Annual Balance Sheet 21 Period 24 (All mountain USD thousands 25. Current 20 Cash and Cathfuil 27 Short Term vents 23 Net Recebe 29 tetory 30 Other Current 11 Total Current 32 Long Terme 3 Lang Terms 14 Red Goodwill 10 Intangible 3 other was 3 Deferred the 1 Total 40 Current 41 Pablo 42 Short Term Debt Current Portion of one or 11 Other Ourrent site 44 Torrent biti 45 Lanfermer 4 Other Liabilities 47 Deferred by Charge 4 Mucks 49. Minority interest 10 Total 51 Stockholderiquity 92 Comment 53 Capitaluri sa tinding 55 Trry Stock 56 Other 57 Total Equity 58 Total & Equity 59 60 Deere & Company Common Stock (DE) Financials Annual income Statement Y2019 YOR Perind Indir (All mountare in USD thousands Total Revenue $3,857,000 $3.904,000 Cost oftevenue S1R1,000 $490.000 Gross Profit $40,41,000 $97.38.000 Operating boses $5,875,000 56,149,000 wth and Development 50 50 Sales General and Admin $50,754,000 $45 1.000 onun tema Other Operating $215,000 5207.000 Doring income 51.540,000 SIMON.000 Add incompenses 32.917.000 51,101.000 Earning interest and To 51.110,000 $1,562.000 interest Expense $2.719.000 $1,016,000 Earnings Before 31,466,000 SHO000 income Tax $73,011,000 570, 10000 Mnenty interest ultyanineUncond Subsidiary $10,20,000 $10,796,000 ut income-Contration SIN105,000 $18.019,000 erinama SO so income glicere Commonwealders $25,190,000 $25,815,000 $30, 129,000 $27,237,000 $5.950,000 $1,751.000 50 $0 $4,000 38.000 514.000 $14.000 $69.584,000 $58,806. 51.763,000 55,129.000 50 30 $5,934.000 50 $5,854,000 $1466,000 SA.C,000 $352.000 $21.000 4.000 13,211,000 $3,000 $3,253,000 $1,650,000 S4854,000 50 50 55.275.000 50 55.275,000 $1,204,000 $4,071.000 $1,727,000 $27.000 . 52.110.000 $23,000 $68,000 54,642.000 $29.952.000 1517.44.000 50 155.407.000 $11.413.000 573_011.000 54.474,000 $27,553,000 112.000 50 1564270001 $11,288.000 570,100.000 20 72015 2018 $2,250,000 $25,799,000 $32.465.000 517:151,000 $25.171.000 $1172.000 23 22 Annual Balance Sheet 23 Period Ending 24 ( Amounts are in USD thousands) 25 Current Listiti 25 th and Cashivalents 27 Short Term investments 28 Net Receivables 29 inventory 30 Other Gurrent Ass 31 Total Current Auto 32 Long Term Avis 33 Long-Term Investments 4 ad Ant 35 Goodwill 36 nag bles 37 Others 3 Deferred to Total 40 Current 4 Accounts Payable Sort Term Debt Current Portion of Long Term Dat 4 Other Creatitis Total Current lite A Long Term Debt 45 Other Deferred Liability Charges M. Stacks 4 Minertine 30 foties S1 Stock Holders 52 Common Stocks 53 Capital ending 55 Trry Stock 96 Euny 57 Total ou SN Tabu Deere & Company Common Stock (DE) Financials Annual Income Statement 2019 Y2018 Period End All amounts are in USD thousands) Total Revenue $3857000 $3904000 Cost of ever $51.000 $450.000 Groe Profit S40 44100 $17.000 Operating $5.975.000 56.100.000 Research and Development 50 30 Sales General and Admin $50.254.000 SA000 Non Recurring em Other Operating Items 1215.000 5207.000 Operating some S140,000 $110.000 Adierem $2.917.000 $3,000,000 Earning Belor interest and Tax $ 10.000 $1.562.000 Interest $2,799,000 31.010,000 Emig Bore Tax $164.000 SRO,000 Income Tax $73,011.000 $70.106.000 Minority interest Equity Taninos Uncomodated diary $10,291.000 $10.756.000 Neticecont Operation $15.100.000 $15.000 Net Inc $0 Net Income Applicable to Common Shareholders $25,000 $5315.000 380.239.000 527217.000 $5.95.3.000 551000 30 50 S4.000 $1.000 $14.000 $14.000 $$1.564.000 SSRS DOO 51,761,000 95.120.000 $0 $ SS SS2.000 $0 $5,554.000 $14.000 $4.083.000 $850,000 $20.000 154.000 $125.000 $125.000 $1,251.00 $145.00 54354 000 50 $0 $5.225.000 $0 $5.275.000 $1.204.000 $4.071.000 $1727100 $27.000 152.000 $2.353,300 $216.000 52.00 SAA74000 $21551.000 Hai, 000 54,142,00 SS52.000 15574.000 $0 S000 $111.000 $71.001.000 544270 $112.000 $70,100,000