please show all work with answer and formula plus explanation Suppose 3M Company reported the following financial data for 2027 and 2026 (in millions).3M COMPANYBalance Sheet (partial)2027Current assetsCash and cash equivalentsAccounts receivable, netInventoriesOther current assetsTotal current assetsCurrent liabilities(a)Your answer is correct.(b)Current ratioCalculate the current ratio for 3M for 2027 and 2026. (Round answers to 2 decimal places, e.g. 1.25:1)2026eTextbook and Media2026$3,010 $1,8603,060 3.1602,5601,7101.510$10,340 $9,390$4,239 $5,54020272,8602.44:1169:1:1Attempts: 1 of 3 usedSuppose that at the end of 2027, 3M management used $310 million cash to pay off $310 million of accounts payable. How wouldits current ratio change? (Round answer to 2 decimal places, e.g. 1.25:1)Current ratio

Lets understand the basics.Current ratio indicates company's ability to meet its short term…

3M COMPANY Balance Sheet (partial) 2027 Current assets Cash and cash equivalents Accounts receivable, net Inventories Other current assets Total current assets Current liabilities $3,010 3,060 2,560 1,710 $10,340 $4,239 2026 $1,860 3,160 2,860 1.510 $9,390 $5.540

3M COMPANY Balance Sheet (partial) 2027 Current assets Cash and cash equivalents Accounts receivable, net Inventories Other current assets Total current assets Current liabilities $3,010 3,060 2,560 1,710 $10,340 $4,239 2026 $1,860 3,160 2,860 1.510 $9,390 $5.540

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

please show all work with answer and formula plus explanation

Suppose 3M Company reported the following financial data for 2027 and 2026 (in millions).
3M COMPANY
Balance Sheet (partial)
2027
Current assets
Cash and cash equivalents
Accounts receivable, net
Inventories
Other current assets
Total current assets
Current liabilities
(a)
Your answer is correct.
(b)
Current ratio
Calculate the current ratio for 3M for 2027 and 2026. (Round answers to 2 decimal places, e.g. 1.25:1)
2026
eTextbook and Media
2026
$3,010 $1,860
3,060 3.160
2,560
1,710
1.510
$10,340 $9,390
$4,239 $5,540
2027
2,860
2.44:1
169:1
:1
Attempts: 1 of 3 used
Suppose that at the end of 2027, 3M management used $310 million cash to pay off $310 million of accounts payable. How would
its current ratio change? (Round answer to 2 decimal places, e.g. 1.25:1)
Current ratio

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