Suppose the following financial data were reported by 3M Company for 2019 and 2020 (dollars in millions). 3M Company Balance Sheets (partial) 2020 2019 Current assets Cash and cash equivalents $ 3,008 $1,833 Accounts receivable, net 3,055 3,100 Inventories 2,630 3,012 Other current assets 1,820 1,506 Total current assets $10,513 $9,451 Current liabilities $ 4,988 $5,830 (a) Calculate the current ratio and working capital for 3M for 2019 and 2020

Current ratio

2019  1.62

2020 2.11

Working capital:

2019 $3,621

2020 $5,525

Explanation:

The current ratio formula =current assets/current liabilities

2019:

current assets is $9451

current liabilities=$5,830

current ratio= $9451/$5,830= 1.62  

working capital =current assets-current liabilities=$9451-$5830=$3621

2020

current assets is $10513

current liabilities=$4988

current ratio= $10513/$4988 =2.11

working capital =current assets-current liabilities=$10,513-$4,988=$5525

a ab

income statement is prepared in order to show the profits and loss of a business. in order to prepare the income statement she should collect all the income and expenses of the product with the cost of production.