Exercise 10-7 (Part Level Submission) The following financial data were reported

Question

Exercise 10-7 (Part Level Submission) The following financial data were reported by 3M Company for 2009 and 2010 (dollars in millions) 3M Company Balance Sheets (partial) 2010 2009 Current assets Cash and cash equivalents Accounts receivable, net Inventories Other current assets 3,377 3,615 3,155 2,068 $12,215 6,089 3,040 3,250 2,639 1,866 $10,795 4,897 Total current assets Current liabilities (a) Calculate the current ratio and working capital for 3M for 2009 and 2010. (Round current ratio to 2 decimal places, e.g. 1.25: 1.) urrent ratio 2010 2009 Working capital 2010 2009 million million

Explanation / Answer

                                                                                          5,898

2010 2009 Current assets     Cash and cash equivalents $3,377 $3,040     Accounts receivable, net 3,615 3,250     Inventories 3,155 2,639     Other current assets 2,068 1,866 Total current assets $12,215 $10,795 Current liabilities $6,089 $4,897 Current ratio Current Asset / Current Liability 2010 12215 / 6089 2.01 : 1 2009 10795/4897 2.20 : 1 Working Capital Current Asset - Current Liability 2010 12215 - 6089                                                                                           6,126 2009 10795 - 4897

                                                                                          5,898

b Current ratio Current Asset / Current Liability 2010 12015 / 5889 2.04 : 1 Working Capital Current Asset - Current Liability 2010 12015 - 5889                                                                                           6,126

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