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

Instructions Refer to 3M’s financial statements and the accompanying notes to answer the following questions.

(a) What type of income statement format does 3M use? Indicate why this format might be used to present income statement information.

(b) What are 3M’s primary revenue sources?

(c) Compute 3M’s gross profit for each of the years 1999–2001. Explain why gross profit declined in 2001.

(d) Why does 3M make a distinction between operating and nonoperating revenue?

(e) What financial ratios did 3M choose to report in its “Financial Summary” section covering the years 1991–2001?