Question: The following financial data were reported by 3M Company for 2008 and 2009 (dollars in millions). Instructions(a) Calculate the current ratio and working capital for

The following financial data were reported by 3M Company for 2008 and 2009 (dollars in millions).

Instructions(a) Calculate the current ratio and working capital for 3M for 2008 and 2009.(b) Suppose that at the end of 2009, 3M management used $200 million cash to pay off $200 million of accounts payable. How would its current ratio and working capital havechanged?

3M Company Balance Sheets (partial) 2009 2008 Current assets Cash and cash equivalents Accounts receivable, net $ 3.040 $1.849 3.250 3.195 Inventories 2,639 3,013 Other current assets 1.866 1.541 $9.598 $5.839 Total current assets $10.795 $ 4,897 Current liabilities

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