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

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter9: Long-term Liabilities

Section: Chapter Questions

Problem 89E: Ratio Analysis Rising Stars Academy provided the following information on its 2019 balance sheet and...

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