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

Question:

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

ЗМ Company Balance Sheet (partial) 2022 2021 Current assets $ 3,040 Cash and cash equivalents Accounts receivable, net

Instructions

a. Calculate the current ratio for 3M for 2022 and 2021.

b. Suppose that at the end of 2022, 3M management used $300 million cash to pay off $300 million of accounts payable. How would its current ratio change?

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Related Book For answer-question

Financial Accounting Tools for Business Decision Making

ISBN: 978-1119493631

9th edition

Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso

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Question Posted: Jul 11, 2019 06:55 AM

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

Question:

ЗМ Company Balance Sheet (partial) 2022 2021 Current assets $ 3,040 Cash and cash equivalents Accounts receivable, net $1,849 3,250 3,195 Inventories 2,639 3,013 Other current assets 1,541 1,866 Total current assets $10,795 $9,598 $ 4,897 $5,839 Current liabilities

Step by Step Answer:

a Current ratio 202210795 4897 220...View the full answer

Financial Accounting Tools for Business Decision Making

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