Deciphering Financial Statements (3M: Minnesota Mining and Manufacturing)
The 2004 annual report of Minnesota Mining and Manufacturing (3M) included the following information (all dollar amounts are in millions):
|
|
2004 |
2003 |
|
From the balance sheet: |
|
|
|
Property, plant, and equipment (net) |
$ 5,711 |
$ 5,609 |
|
From the statement of cash flows—operating: |
|
|
|
Depreciation |
835 |
964 |
|
From the statement of cash flows—investing: |
|
|
|
Purchases of property, plant and equipment—outflow |
(937) |
(677) |
|
Proceeds from sale of PP&E and other assets—inflow |
69 |
129 |
|
From the notes to the financial statements: |
|
|
|
Property, plant, and equipment, at cost |
16,290 |
15,841 |
|
Accumulated depreciation |
10,579 |
10,232 |
1. Using only the net PP&E figures, estimate the book value of the property, plant, and equipment that was sold during the year.
2. Using the individual PP&E and accumulated depreciation accounts, estimate the gain or loss on the disposal of property, plant, and equipment during the year.