Suppose the following financial data were reported by 3M Company for 2013 and 2014 (dollars in millions).
Question:
Instructions
(a) Calculate the current ratio and working capital for 3M for 2013 and 2014.
(b) Suppose that at the end of 2014, 3M management used $200 million cash to pay off $200 million of accounts payable. How would its current ratio and working capital havechanged?
Transcribed Image Text:
3M COMPANY Balance Sheets (partial) 2014 2013 Current assets Cash and cash equivalents Accounts receivable, net Inventories Other current assets 3,040 3,250 2,639 1,866 $10,795 4,897 $1,849 3,195 3,013 1,541 $9,598 5,839 Total current assets Current liabilities
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a Current ratio 2013 9598 5839 1641 2014 10795 4897 2201 Work...View the full answer
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Related Book For
Accounting Principles
ISBN: 9781118566671
11th Edition
Authors: Jerry Weygandt, Paul Kimmel, Donald Kieso
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