The following financial data were reported by 3M Company for 2006 and 2007 (dollars in millions).

Instructions(a) Calculate the current ratio and working capital for 3M for 2006 and 2007.(b) Suppose that at the end of 2007 3M management used $200 million cash to pay off $200 million of accounts payable. How would its current ratio and working capital havechanged?

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2007 2006 Current assets $1,896 3,362 $1,447 3,102 Cash and cash equivalents Accounts receivable, net 2,852 Inventories 2,601 1,796 Other current assets 1,728 $9,838 $5,362 $8,946 $7.323 Total current assets Current liabilities