( 2017 31.857 15.05 8.800 1.670 1581 3M COMPANY Consolidated Statements of income For Years Ended December 31 milliona) 2010 News $32.755 Operating per Coul of 18. Selling general and depenes 7.000 Rearch, development and depen 1.821 Banos 1547) Total operating expenses 5. Operating income 7,207 Omere, 207 Income before in 7.000 Provision for income 1.537 Netcomending rencontrolling 300 Less Net income to continua 14 Niet income 5.340 7.692 144 7.500 2:07 4.30 11 SU W00100 2018 2017 52.50 350 5.000 4364 741 5 3.0 10 4910 404 07 200 14277 3M COMPANY Consolidated Balance Sheets At December 31(5 millions) Current Cath and cash Marcable secure Accounts receivable Total Inventor Prepaid Other cuenta The new Property, plant and equipment ne Good Intangible Omer Tasso Ourens Short-term bonowings and current ong-term Account Acord pero Accued non Other current Tout current Long-debt Pension and postersent bene Ora To 13,700 0,754 10.051 2007 013 2.030 S. $35.000 $1.211 2300 30 2.223 7244 13,411 2.000 5010 26.053 51,00 11145 870 310 2,700 7. 12.000 3,000 2.062 Module A Cate Business Publishers +1 2018 2017 com pre A COMPANY Consolidated Balance Sheets Al December 31 millions) SM Company Commons Adoption Feed Thes Acum the conteni Income To Comerul Norges TY Towed 3.043 00 . 5.39 20.115 21. 11.563 0:54 11 22 13707 500 Analysis and Interpretation of Liquidity and Solvency Refer to the financial information of 3M Company in P4-41 to answer the following requirements. Required a. Compute the current ratio and quick ratio for 2018 and 2017. Comment on any observed trends. b. Compute times interest earned and liabilities-to-equity ratios for 2018 and 2017. Comment on any noticeable changes. c. Summarize your findings about the company's liquidity and solvency. Do you have any concerns about its ability to meet its debt obligations? on or profitability Balance sheets and income statements for 3M Company follow, LO4, 5, 6, 3M Company MBC 2017 $31,657 3M COMPANY Consolidated Statements of Income For Years Ended December 31 (5 millions) 2018 Net sales. $32,765 Operating expenses Cost of sales. 16,682 Selling, general and administrative expenses 7,602 Research, development and related expenses 1.821 Gain on sale of businesses (547) Total operating expenses 25,558 Operating income 7.207 Other expense.net 207 Income before income taxes 7,000 Provision for income taxes 1.637 Net Income including noncontrolling interest 5,383 Les Not income attributable to noncontrolling interest 14 Net Income attributable to 3M.. $5.349 16,055 6,626 1,870 (586) 23,965 7,692 144 7,548 2.579 4,869 11 $ 4.858 interest expense, grosis 5350 million in 2015 and $323 milion in 2017 2018 2017 3M COMPANY Consolidated Balance Sheets At December 31 (5 millions) Current assets Cash and cash equivalents Marketable securities Accounts receivable Total Inventories Prepaids. Other current sets Total current assets Property, plant and equipment, net Goodwil.. Intangible assets-net Other assets Total assets Current abilities Short-term borrowings and current portion of long-term der Accounts payabin Accrued payroll Accrued income taxes Other current liabilities Total current liabili Long-term debt Pension and postretirement benefits Other liabilities Totalbos $ 2,653 380 5.020 4,308 741 349 13.709 8.738 10.061 2.657 1.345 $35,500 $ 3,050 1.075 4,911 4,034 937 266 14.277 5,866 10.513 2.938 1 395 337.97 5 1.211 2.266 749 243 2.779 7244 13.411 2.987 31010 26,052 $ 1,053 1.945 870 310 2.709 7,587 12.090 3.620 2.962 26.365 continued ontinued from previous page 2018 2017 IH 3M COMPANY Consolidated Balance Sheets At December 31 ($ millions) 3M Company shareholders' equity Common stock par value Additional paid-in capital, Retained earnings Treasury stock Accumulated other comprehensive income (loss) Total 3M Company shareholders equity Noncontrolling interest Total equity. Total liabilities and equity IN 9 5,643 40,636 (29,626) (8,866) 9,796 52 9,848 $36,500 9 5,352 39.115 (25,887) (7.026) 11,563 59 11,622 $37.987 HERRIER Analysis and Interpretation of Liquidity and Solvency Refer to the financial information of 3M Company in P4-41 to answer the following requirements. Required a. Compute the current ratio and quick ratio for 2018 and 2017. Comment on any observed trends. b. Compute times interest earned and liabilities-to-equity ratios for 2018 and 2017 Comment on any noticeable changes Summarize your findings about the company's liquidity and solvency. Do you have any concerns about its ability to meet its debt obligations