Suppose 3M Company reported the following financial data for 2014 and 2013 (in millions). Instructions (a) Calculate
Question:
Instructions
(a) Calculate the current ratio for 3M for 2014 and 2013.
(b) Suppose that at the end of 2014, 3M management used $300 million cash to pay off $300 million of accounts payable. How would its current ratiochange?
Transcribed Image Text:
3M COMPANY Balance Sheet (partial) 2014 2013 Current assets Cash and cash equivalents Accounts receivable, net Inventories 3,040 3,250 2,639 1,866 $10,795 1,849 3,195 3,013 1,541 9,598 $5,839 current assets Total current assets Current labilities 4,897
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a Current ratio 201410795 4897 ...View the full answer
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Related Book For
Accounting Tools for Business Decision Making
ISBN: 978-1118128169
5th edition
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso
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