3M Company The financial statements and accompanying notes of 3M are presented in Appendix 5B or can be accessed on the Take Action! CD.

Instructions

(a) Examining each item in 3M’s balance sheet, identify those items that require present value, discounting, or interest computations in establishing the amount reported. (The accompanying notes are an additional source for this information.)

(b) (1) What interest rates are disclosed by 3M as being used to compute interest and present values? (2)

Why are there so many different interest rates applied to 3M’s financial statement elements (assets, liabilities, revenues, and expenses)?