Suppose the following financial data were reported by 3M Company for 2019 and 2020 (dollars in millions). 3M CompanyBalance Sheets (partial)     2020   2019 Current assets             Cash and cash equivalents   $3,200   $1,881     Accounts receivable, net   3,500   3,175     Inventories   2,702   3,044     Other current assets   1,896   1,582 Total current assets   $11,298   $9,682 Current liabilities   $4,791   $5,869   1.Calculate the current ratio and working capital for 3M for 2019 and 2020.   2.Suppose that at the end of 2020, 3M management used $198 million cash to pay off $198 million of accounts payable. How would its current ratio and working capital have changed?

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Suppose the following financial data were reported by 3M Company for 2019 and 2020 (dollars in millions).

3M Company
Balance Sheets (partial)
   
2020
 
2019
Current assets        
    Cash and cash equivalents   $3,200   $1,881
    Accounts receivable, net   3,500   3,175
    Inventories   2,702   3,044
    Other current assets   1,896   1,582
Total current assets   $11,298   $9,682
Current liabilities   $4,791   $5,869
 
1.Calculate the current ratio and working capital for 3M for 2019 and 2020.
 
2.Suppose that at the end of 2020, 3M management used $198 million cash to pay off $198 million of accounts payable. How would its current ratio and working capital have changed?
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