Deere & Company manufactures, distributes, and finances a full range of agricultural equipment; a broad range of industrial equipment for construction, forestry, and public works; and a variety of lawn and grounds care equipment. The company also provides credit, health care, and insurance products for businesses and the general public. Consider the following information from the Deere & Company 2000 Annual Report:
|
(in millions) |
1997 |
1998 |
1999 |
2000 |
|
Sales |
$12,791 |
$13,822 |
$11,751 |
$13,137 |
|
Cost of goods sold |
8,481 |
9,234 |
8,178 |
8,936 |
|
Gross margin |
4,310 |
4,588 |
3,573 |
4,201 |
|
Operating expenses |
2,694 |
2,841 |
3,021 |
3,236 |
|
Net operating income |
$ 1,616 |
$ 1,747 |
$ 552 |
$ 965 |
a. Prepare a statement showing the trend percentages for each item using 1997 as the base year.
b. Comment on the trends noted in part (a).