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Analysis and Interpretation of Liquidity and Solvency Balance sheets and income statements for 3 M Company follow. 3 M COMPANY Consolidated Statements of Income For
Analysis and Interpretation of Liquidity and Solvency
Balance sheets and income statements for M Company follow.
M COMPANY
Consolidated Statements of Income
For Years Ended December $ millions
Net sales $ $
Operating expenses
Cost of sales
Selling, general and administrative expenses
Research, development and related expenses
Gain on sale of businesses
Total operating expenses
Operating income
Other expense, net
Income before income taxes
Provision for income taxes
Net income including noncontrolling interest
Less: Net income attributable to noncontrolling interest
Net income attributable to M $ $
Interest expense, gross is $ million in and $ million in
M COMPANY
Consolidated Balance Sheets
At December $ millions
Current assets
Cash and cash equivalents $ $
Marketable securities
Accounts receivable
Total inventories
Prepaids
Other current assets
Total current assets
Property, plant and equipment, net
Goodwill
Intangible assetsnet
Other assets
Total assets $ $
Current liabilities
Shortterm borrowings and current portion of longterm debt $ $
Accounts payable
Accrued payroll
Accrued income taxes
Other current liabilities
Total current liabilities
Longterm debt
Pension and postretirement benefits
Other liabilities
Total liabilities $ $
M Company shareholders equity
Common stock par value
Additional paidin capital
Retained earnings
Treasury stock
Accumulated other comprehensive income loss
Total M Company shareholders equity
Noncontrolling interest
Total equity
Total liabilities and equity $ $
Required
a Compute the current ratio and quick ratio for and
Note: Round your answers to two decimal places for example, enter for
Current ratio Answer
Answer
What is the Quick ratio
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