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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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