Solvency Ratios Exhibit 12-19 contains slightly modified income statements and balance sheets of Minnesota Mining and Manufacturing Company (3M), a diversified manufacturing company with operations in the United States and 51 other countries. 1. Compute the following ratios for 2002:

(a) total-debt-to-total-assets and

(b) total-debt-to-total- equity. To be consistent with the source of industry data, define total debt as short-term debt and long-term debt only. 2. Assess 3M's solvency compared with the following industry averages from Reuters MultexInvestor. Total-debt-to-total-assets Total-debt-to-total-shareholders'-equity Not available 248.0%