Suppose the following financial data were reported by 3M Company for 2021 and 2022 (dollars in millions). Current assets Cash and cash equivalents Accounts receivable, net Inventories (a) Other current assets Current liabilities Total current assets. 3M Company Balance Sheets (partial) Current ratio (b) 2021 2022 Working capital 2021 2022 Current ratio $ $ 2022 $ 3,030 Working capital $ 3,090 2,612 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.) 1,810 $10,542 $4,946 2021 $1,863 3,130 3,024 1,541 $9,558 $5,875 :1 :1 million Suppose that at the end of 2022, 3M management used $150 million cash to pay off $150 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.) million :1 million
Suppose the following financial data were reported by 3M Company for 2021 and 2022 (dollars in millions). Current assets Cash and cash equivalents Accounts receivable, net Inventories (a) Other current assets Current liabilities Total current assets. 3M Company Balance Sheets (partial) Current ratio (b) 2021 2022 Working capital 2021 2022 Current ratio $ $ 2022 $ 3,030 Working capital $ 3,090 2,612 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.) 1,810 $10,542 $4,946 2021 $1,863 3,130 3,024 1,541 $9,558 $5,875 :1 :1 million Suppose that at the end of 2022, 3M management used $150 million cash to pay off $150 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.) million :1 million
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Suppose the following financial data were reported by 3M Company for 2021 and 2022 (dollars in millions).
Current assets
(a)
Cash and cash equivalents
Accounts receivable, net
Inventories
Other current assets
Current liabilities
Total current assets
3M Company
Balance Sheets (partial)
Current ratio
(b)
2021
2022
Working capital
2021
2022
Current ratio
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.)
$
Working capital
$
2022
$ 3,030
$
3,090
2,612
1,810
2021
$4,946
$1,863
3,130
3,024
1,541
$10,542 $9,558
$5,875
:1
:1
Suppose that at the end of 2022, 3M management used $150 million cash to pay off $150 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.)
million
million
:1
million
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