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 $3,044 $1,887 Accounts receivable, net 3,100 3,040 Inventories 2,687 3,022 Other current assets 1,894 1,526 Total current assets $10,725 $9.475 Current liabilities $ 4,988 $5.893 (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) Current ratio 2021 2.15 :1 2022 1.60 :1 Working capital 2021 24 5737 million 2022 %24 3582 million
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 $3,044 $1,887 Accounts receivable, net 3,100 3,040 Inventories 2,687 3,022 Other current assets 1,894 1,526 Total current assets $10,725 $9.475 Current liabilities $ 4,988 $5.893 (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) Current ratio 2021 2.15 :1 2022 1.60 :1 Working capital 2021 24 5737 million 2022 %24 3582 million
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![(a)
Calculate the current ratio and working capital for 3M for 2021 and 2022. (Round current ratio to 2 decimal places, eg 125:1.)
Current ratio
2021
2.15
:1
2022
1.60
:1
Working capital
2021
24
5737
million
2022
$4
3582
million
(b)
Suppose 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, eg. 1.25:1.)
Current ratio
2.20
:1
Working capital
%$4
5737
million](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fcb3af670-7608-4741-9a5b-06b7480209a8%2Fd4126adc-9f80-48de-b8ef-295abf386d48%2Frmm8yt_processed.jpeg&w=3840&q=75)
Transcribed Image Text:(a)
Calculate the current ratio and working capital for 3M for 2021 and 2022. (Round current ratio to 2 decimal places, eg 125:1.)
Current ratio
2021
2.15
:1
2022
1.60
:1
Working capital
2021
24
5737
million
2022
$4
3582
million
(b)
Suppose 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, eg. 1.25:1.)
Current ratio
2.20
:1
Working capital
%$4
5737
million
![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
$3,044
$1,887
Accounts receivable, net
3,100
3,040
Inventories
2,687
3,022
Other current assets
1.894
1,526
Total current assets
$10,725
$9.475
Current liabilities
$ 4,988
$5,893
(a)
Calculate the current ratio and working capital for 3M for 2021 and 2022. (Round current ratio to 2 decimal places, eg 125:1)
Current ratio
2021
2.15
:1
2022
1.60
:1
Working capital
2021
%24
5737
million
2022
%24
3582
million](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fcb3af670-7608-4741-9a5b-06b7480209a8%2Fd4126adc-9f80-48de-b8ef-295abf386d48%2F9ug66m_processed.jpeg&w=3840&q=75)
Transcribed Image Text: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
$3,044
$1,887
Accounts receivable, net
3,100
3,040
Inventories
2,687
3,022
Other current assets
1.894
1,526
Total current assets
$10,725
$9.475
Current liabilities
$ 4,988
$5,893
(a)
Calculate the current ratio and working capital for 3M for 2021 and 2022. (Round current ratio to 2 decimal places, eg 125:1)
Current ratio
2021
2.15
:1
2022
1.60
:1
Working capital
2021
%24
5737
million
2022
%24
3582
million
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