I could really use some help with this problem **3M Company Balance Sheets (Partial)**The following table presents financial data for 3M Company for the years 2021 and 2022, reported in millions of dollars.| | 2022 | 2021 ||------------------------------------|--------|--------|| **Current Assets** | | || Cash and cash equivalents | $3,016 | $1,892 || Accounts receivable, net | $3,035 | $3,105 || Inventories | $2,642 | $3,016 || Other current assets | $1,814 | $1,505 || **Total current assets** | $10,507| $9,518 || **Current Liabilities** | $4,918 | $5,824 |---**(a) Calculation of Current Ratio and Working Capital**Calculate the current ratio and working capital for 3M for 2021 and 2022. *(Round current ratio to 2 decimal places, e.g., 1.25 : 1.)*---**Current Ratio**- **2021:** [Enter calculation] : 1- **2022:** [Enter calculation] : 1**Working Capital**- **2021:** Total current assets - Current liabilities = $9,518 - $5,824- **2022:** Total current assets - Current liabilities = $10,507 - $4,918This information helps in understanding the company's liquidity position by assessing its ability to cover short-term obligations with short-term assets. ### Working Capital Section**Working Capital:**- **2021:** $ _______ million- **2022:** $ _______ million---### (b) Scenario AnalysisSuppose that at the end of 2022, 3M management used $220 million cash to pay off $220 million of accounts payable. How would its current ratio and working capital have changed? *(Round current ratio to 2 decimal places, e.g. 1.25 : 1.)*- **Current Ratio:** _______ : 1- **Working Capital:** $ _______ million---This section provides a framework for understanding the impact of financial decisions on a company's liquidity. The focus is on how the payment of accounts payable using cash affects the working capital and the current ratio, a key indicator of financial health. By adjusting these parameters, one can gauge the potential shifts in the company's financial strategy and stability.

Name: I could really use some help with this problem **3M Company Balance Sh
Uploaded: 2022-11-18T00:26:54.000Z
Channel: Bartleby
Description: I could really use some help with this problem **3M Company Balance Sheets (Partial)**The following table presents financial data for 3M Company for the years 2021 and 2022, reported in millions of dollars.| | 2022

Ratio analysis is a method of measuring the financial position of the organization with different…

Business

Accounting

Suppose the following financial data were reported by 3M Company for 2021 and 2022 (dollars in millions). 3M Company Balance Sheets (partial) 2022 2021 Current assets Cash and cash equivalents $ 3,016 $1,892 Accounts receivable, net 3,035 3,105 Inventories 2,642 3,016 Other current assets 1,814 1,505 Total current assets $10,507 $9,518 Current liabilities $ 4,918 $5,824 (a) Calculate the current ratio and working capital for 3M for 2021 and 2022. (Round current ratio to 2 decimal places, e.g. 1.25 : 1.)