In: Accounting
Sherwood, Inc., the parent company of Frito-Lay snack foods and Sherwood beverages, had the following current assets and current liabilities at the end of two recent years:
Current Year (in millions) |
Previous Year (in millions) |
|||
Cash and cash equivalents | $2,485 | $2,671 | ||
Short-term investments, at cost | 1,765 | 4,961 | ||
Accounts and notes receivable, net | 5,610 | 5,088 | ||
Inventories | 1,305 | 580 | ||
Prepaid expenses and other current assets | 435 | 215 | ||
Short-term obligations | 232 | 2,465 | ||
Accounts payable | 5,568 | 5,485 |
a. Determine the (1) current ratio and (2) quick ratio for both years. Round to one decimal place.
Current Year | Previous Year | |
1. Current ratio | ||
2. Quick ratio |