(a) Calculate the current ratio and working capital for 3M for 2021 and 2022. (Round current ratio to 2 decimal plc working capital answers to million.) Current ratio 2021 2022 Working capital 2021 million 2022 million

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Please answer option A and B

Current Attempt in Progress
Suppose the following financial data were reported by 3M Company for 2021 and 2022 (dollars in millons).
3M Company
Balance Sheets (partial)
2022
2021
Current assets
Cash and cash equivalents
$3,000
$1,845
Accounts receilvable, net
3,480
3,170
Inventories
2,648
3,046
Other current assets
1,920
1,617
Total current assets
$11,048
$9,678
Current liablities
$4,863
$5,842
(a)
Calculate the current ratio and working capital for 3M for 2021 and 2022. (Round current ratio to 2 decimal places, es. 1.25:1. Enter
working capital answers to million.)
Current ratio
2021
:1
2022
:1
Working capital
2021
million
2022
million
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Transcribed Image Text:Current Attempt in Progress Suppose the following financial data were reported by 3M Company for 2021 and 2022 (dollars in millons). 3M Company Balance Sheets (partial) 2022 2021 Current assets Cash and cash equivalents $3,000 $1,845 Accounts receilvable, net 3,480 3,170 Inventories 2,648 3,046 Other current assets 1,920 1,617 Total current assets $11,048 $9,678 Current liablities $4,863 $5,842 (a) Calculate the current ratio and working capital for 3M for 2021 and 2022. (Round current ratio to 2 decimal places, es. 1.25:1. Enter working capital answers to million.) Current ratio 2021 :1 2022 :1 Working capital 2021 million 2022 million eTextbook and Media Attempts: 0 of 5 used Submit Anawer Save for Later
(b)
Suppose that at the end of 2022, 3M management used $195 million cash to pay off $195 milion of accounts payable. How would
its current ratio and working capital have changed? (Round current ratio to 2 decimal places, eg 1.25:1. Enter working capital answer
to million.)
Current ratio
:1
Working capital
$4
million
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Transcribed Image Text:(b) Suppose that at the end of 2022, 3M management used $195 million cash to pay off $195 milion of accounts payable. How would its current ratio and working capital have changed? (Round current ratio to 2 decimal places, eg 1.25:1. Enter working capital answer to million.) Current ratio :1 Working capital $4 million eTextbook and Media Save for Later Attempts: 0 of 5 used Submit Answer
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