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(Solution) - The products of Minnesota Mining and Manufacturing Company 3M

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The products of Minnesota Mining and Manufacturing Company (3M) range from office supplies, duct tape, and road reflectors to laser imagers for CAT scanners. One of the company?s goals is to accelerate sales and product development. Toward that end, it spends over $1 billion a year on research and development (R&D) and related investment activities. It has also redesigned many of its products to satisfy the needs of its three international operations groups. Suppose the manager of 3M?s Asia-Pacific group is preparing the cash budget for next year?s operations. Explain how R&D expenses would affect the cash receipts and cash payments in that cash budget.


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This question was answered on: Jul 11, 2017

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