Current Position Analysis 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 years: Current Year (in millions) $2,449 1. Current ratio 2. Quick ratio b. The liquidity of Sherwood has, company with during this period. Previous Year (in millions) $2,517 4,675 4,796 Cash and cash equivalents Short-term investments, at cost 1,740 Accounts and notes receivable, net 5,531 Inventories 1,458 Prepaid expenses and other current assets 486 389 Short-term obligations 9,331 Accounts payable a. Determine the (1) current ratio and (2) quick ratio for both years. Round to one decimal place Current Year Previous Year 972 360 4,129 9,191 Sherwood is a some over this time period. Both the current and quick raties have resources for meeting short-term obligations. Its liquidity as measured by the current and quick raties ha
Current Position Analysis 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 years: Current Year (in millions) $2,449 1. Current ratio 2. Quick ratio b. The liquidity of Sherwood has, company with during this period. Previous Year (in millions) $2,517 4,675 4,796 Cash and cash equivalents Short-term investments, at cost 1,740 Accounts and notes receivable, net 5,531 Inventories 1,458 Prepaid expenses and other current assets 486 389 Short-term obligations 9,331 Accounts payable a. Determine the (1) current ratio and (2) quick ratio for both years. Round to one decimal place Current Year Previous Year 972 360 4,129 9,191 Sherwood is a some over this time period. Both the current and quick raties have resources for meeting short-term obligations. Its liquidity as measured by the current and quick raties ha
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Current Position Analysis
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)
$2,449
$2,517
1,740
4,675
5,531
4,796
Inventories
1,458
972
Prepaid expenses and other current assets
486
360
4,129
389
Short-term obligations
9,331
9,191
Accounts payable
a. Determine the (1) current ratio and (2) quick ratio for both years. Round to one decimal place.
Previous Year
Current Year
Cash and cash equivalents
Short-term investments, at cost
Accounts and notes receivable, net
Previous Year
(in millions)
1. Current ratio
2. Quick ratio
b. The liquidity of Sherwood has)
company with
during this period.
Sherwood is a
some over this time period. Both the current and quick ratios have
resources for meeting short-term obligations. Its liquidity as measured by the current and quick ratios has
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