One company may acquire another for a number of different reasons The acquisition often has a significant impact on the financial statements In 2005, 3M Corporation acquired CUNO Incorporated Obtain a copy of the 3M 10 K filing for 2005 The 10 K reports the annual results for a company and is often...

a The CUNO acquisition improved 3Ms product mix by adding a comprehensive line ...

One company may acquire another for a number of different reasons. The acquisition often has a significant

Question:

One company may acquire another for a number of different reasons. The acquisition often has a significant impact on the financial statements. In 2005, 3M acquired CUNO Incorporated. Obtain a copy of the 3M 10-K filing for 2005. The 10-K reports the annual results for a company and is often available on the Investor Relations section of a company’s website. It is also available on the SEC’s website at www.SEC.gov.

Required
Use the 10-K for 2005 to find the answers to the following questions about 3M’s acquisition of CUNO Inc.
a. Provide at least one reason why 3M acquired CUNO.
b. How was the acquisition funded?
c. What was the impact of the CUNO acquisition on net accounts receivable?
d. What was the impact of the CUNO acquisition on inventories?

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...