Suppose 3M Company reported the following financial data for 2022 and 2021 (in millions).

3M COMPANY Balance Sheet (partial)
		2022		2021
Current assets
Cash and cash equivalents		$3,065		$1,870
Accounts receivable, net		3,270		3,220
Inventories		2,665		3,030
Other current assets		1,890		1,560
Total current assets		$10,890		$9,680
Current liabilities		$4,356		$5,808

(a)

Correct answer iconYour answer is correct.

Calculate the current ratio for 3M for 2022 and 2021. (Round answers to 2 decimal places, e.g. 1.25:1)

		2022		2021
Current ratio		enter current ratio rounded to 2 decimal places :1		enter current ratio rounded to 2 decimal places :1

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(b)

Suppose that at the end of 2022, 3M management used $500 million cash to pay off $500 million of accounts payable. What would the new ratio be? (Round answer to 2 decimal places, e.g. 1.25:1)

Current ratio

enter current ratio rounded to 2 decimal places :1