iysisSherwood, Inc., the parent company of Frito-Lay snack foods and Sherwood beverages, had the following current assets and current liabilities at the end oftwo recent years:Current YearPrevlous Year(In mllllons)(In milllons)Cash and cash equivalents$1,534$1,533Short-term investments, at cost1,0902,847Accounts and notes receivable, net3,4642,921Inventories2,2831,523Prepaid expenses and other current assets761563Short-term obligations3043,233Accounts payable7,3067,197a. Determine the (1) current ratio and (2) quick ratio for both years. Round to one decimal place.Current YearPrevlous Year1. Current ratio2.42.2 X2. Quick ratio0.82.0 X

Name: iysisSherwood, Inc., the parent company of Frito-Lay snack foods and
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Description: iysisSherwood, Inc., the parent company of Frito-Lay snack foods and Sherwood beverages, had the following current assets and current liabilities at the end oftwo recent years:Current YearPrevlous Year(In mllllons)(In milllons)Cash and cash equivale

Answered: a. Determine the (1) current ratio and…

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a. Determine the (1) current ratio and (2) quick ratio for both years. Round to one decimal place.

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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iysis
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
Prevlous Year
(In mllllons)
(In milllons)
Cash and cash equivalents
$1,534
$1,533
Short-term investments, at cost
1,090
2,847
Accounts and notes receivable, net
3,464
2,921
Inventories
2,283
1,523
Prepaid expenses and other current assets
761
563
Short-term obligations
304
3,233
Accounts payable
7,306
7,197
a. Determine the (1) current ratio and (2) quick ratio for both years. Round to one decimal place.
Current Year
Prevlous Year
1. Current ratio
2.4
2.2 X
2. Quick ratio
0.8
2.0 X

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