Liquidity Ratios Exhibit 12-19 contains the slightly modified income statements and balance sheets of Minnesota Mining and Manufacturing Company (3M), maker of Scotch brand tapes. 1. Compute the following ratios for 2002:

(a) current,

(b) average collection period, and

(c) inventory turnover. 2. Assess 3M's liquidity compared with the following industry averages from Reuters MultexInvestor, Reuters classifies 3M in the conglomerates industry, which includes firms as diversified as General Electric, ITT, Raytheon, and Tyco. Current ratio 1.56 times. Average collection period Inventory turnover 107.6 days 6.19 times