a. Based on these data, calculate the following for 2008 and 2007:

1. Days' sales in receivables

2. Accounts receivable turnover (gross receivables at year-end)

3. Days' sales in inventory

4. Inventory turnover (use inventory at year-end)

5. Working capital

6. Current ratio

7. Acid-test ratio

b. Comment on each ratio individually

c. Comment on the apparent total liquidity.

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CONSOLIDATED STATEMENT OF INCOME 3M COMPANY AND SUBSIDIARIES Years ended December 31 (Millions, except per share amounts) Net sales Operating expenses 2008 2007 2006 Cost of sales 13,379 5,245 1,404 23 12,735 5,015 1,368 49) 18,269 6,193 11,713 5,066 1,522 (1,074) 17,227 5.696 Selling, general, and administrati ve expenses Research, development, and related expenses (Gainloss on sale of business Total Operating income Interest expense and income Interest expense 215 210 122 Interest income 51) Total Income before income taxes and minority interest Provision for income taxes Minority interest 110 5,108 1,588 60 S 3.460 699.2 4.95 707.2 4.89 78 6,115 1,964 5,625 1.723 51 S 3851 747.5 Net income Weighted average common shares outstanding Earnings per share basic Weighted average common shares outstanding Eamings per share diluted Cash dividends paid per common share S 4,096 718.3 5.70 732.0 5.60 S 192 basic diluted 761.0 5.06 S 1.84