Current Position Analysis Sherwood, Inc., the parent company of Tasty snack foods and Super 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 $3,315 $3,531 Short-term investments, at cost 2,355 6,557 Accounts and notes receivable, net 7,485 6,726 Inventories 1,973 1,753 Prepaid expenses and other current assets 658 649 Short-term obligations 351 3,723 Accounts payable 8,419 8,287 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 fill in the blank 1 fill in the blank 2 2. Quick ratio fill in the blank 3 fill in the blank 4 b. The liquidity of Sherwood has some over this time period. Both the current and quick ratios have . Sherwood is a company with resources for meeting short-term obligations. Its liquidity as measured by the current and quick ratios has during this period.
Current Position Analysis Sherwood, Inc., the parent company of Tasty snack foods and Super 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 $3,315 $3,531 Short-term investments, at cost 2,355 6,557 Accounts and notes receivable, net 7,485 6,726 Inventories 1,973 1,753 Prepaid expenses and other current assets 658 649 Short-term obligations 351 3,723 Accounts payable 8,419 8,287 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 fill in the blank 1 fill in the blank 2 2. Quick ratio fill in the blank 3 fill in the blank 4 b. The liquidity of Sherwood has some over this time period. Both the current and quick ratios have . Sherwood is a company with resources for meeting short-term obligations. Its liquidity as measured by the current and quick ratios has during this period.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Current Position Analysis
Sherwood, Inc., the parent company of Tasty snack foods and Super 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 | $3,315 | $3,531 | ||
| Short-term investments, at cost | 2,355 | 6,557 | ||
| Accounts and notes receivable, net | 7,485 | 6,726 | ||
| Inventories | 1,973 | 1,753 | ||
| Prepaid expenses and other current assets | 658 | 649 | ||
| Short-term obligations | 351 | 3,723 | ||
| Accounts payable | 8,419 | 8,287 |
a. Determine the (1)
| Current Year | Previous Year | |
| 1. Current ratio | fill in the blank 1 | fill in the blank 2 |
| 2. Quick ratio | fill in the blank 3 | fill in the blank 4 |
b. The liquidity of Sherwood has
some over this time period. Both the current and quick ratios have
. Sherwood is a
company with
resources for meeting short-term obligations. Its liquidity as measured by the current and quick ratios has
during this period.
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