3M Company reported the following financial data for 2006 and 2005 ($ in millions). Instructions (a) Calculate

Question:

3M Company reported the following financial data for 2006 and 2005 ($ in millions).

Instructions
(a) Calculate the current ratio for 3M for 2006 and 2005.
(b) Suppose that at the end of 2006 3M management used $300 million cash to pay off $300 million of accounts payable. How would its current ratiochange?

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Accounting Tools For Business Decision Making

ISBN: 9780470377857

3rd Edition

Authors: Paul D. Kimmel

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Question Posted: Apr 21, 2012 04:39 AM

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3M Company reported the following financial data for 2006 and 2005 ($ in millions). Instructions (a) Calculate

Question:

3M COMPANY Balance Sheet (partial) 2006 2005 Current assets Cash and cash equivalents Accounts receivable, net Inventories Other current assets $1,447 3,102 2,601 1,796 $8,946 $7,323 $1,072 2,838 2,162 1,043 $7,115 $5,238 Total current assets Current liabilitics

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a Current ratio 20068946 7323 ...View the full answer

Accounting Tools For Business Decision Making

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