How would its current ratio and working capital have changed?


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How would its current ratio and working capital have changed? 1 answer below » Suppose the following financial data were reported by3M Companyfor 2013 and 2014 (dollars in millions) 3M COMPANY Balance Sheets (partial) 2014 2013 Current assets Cash and cash equivalents $ 3,040 $1,849 Accounts receivable, net 3,250 3,195 Inventories 2,639 3,013 Other current assets 1,866 1,541 Total current assets $10,795 $9,598 Current liabilities $ 4,897 $5,839 Instructions (a)Calculate the current ratio and working capital for 3M for 2013 and 2014. (b)Suppose that View complete question » Suppose the following financial data were reported by3M Companyfor 2013 and 2014 (dollars in millions) 3M COMPANY Balance Sheets (partial) 2014 2013 Current assets Cash and cash equivalents $ 3,040 $1,849 Accounts receivable, net 3,250 3,195 Inventories 2,639 3,013 Other current assets 1,866 1,541 Total current assets $10,795 $9,598 Current liabilities $ 4,897 $5,839 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 have changed? View less » Jun 11 2014 04:10 PM

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