a. compute the receivables, inventory, and PPE turnover ratios for both 2018 and 2017. b. what changes are evident in the turnover rates of 3M for these years? Discuss ways in which a company such as 3M can improve its turnover within each of these three areas

a. compute the receivables, inventory, and PPE turnover ratios for both 2018 and 2017. b. what changes are evident in the turnover rates of 3M for these years? Discuss ways in which a company such as 3M can improve its turnover within each of these three areas

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

a. compute the receivables, inventory, and PPE turnover ratios for both 2018 and 2017.
b. what changes are evident in the turnover rates of 3M for these years? Discuss ways in which a company such as 3M can improve its turnover within each of these three areas

($ millions)
Sales
Cost of Sales
Receivables
Inventories
PPE, net
$32,765
$16,682
$4,366
$5,020
4,911
$8,738
8,866
8,516
2018.
..... ...
2017.
31,657
16,055
4,034
2016..
30,109
15,118
4,392
3,385

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