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 $3,155 $3,047 Short-term investments, at cost 2,241 5,659 Accounts and notes receivable, net 7,123 5,803 Inventories 1,445 1,926 Prepaid expenses and other current assets 481 712 Short-term obligations 385 4,089 Accounts payable 9,245 9,101 a. Determine the (1) current ratio and (2) quick ratio for both years. Round to one
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 $3,155 $3,047 Short-term investments, at cost 2,241 5,659 Accounts and notes receivable, net 7,123 5,803 Inventories 1,445 1,926 Prepaid expenses and other current assets 481 712 Short-term obligations 385 4,089 Accounts payable 9,245 9,101 a. Determine the (1) current ratio and (2) quick ratio for both years. Round to one
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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 | $3,155 | $3,047 | ||
| Short-term investments, at cost | 2,241 | 5,659 | ||
| Accounts and notes receivable, net | 7,123 | 5,803 | ||
| Inventories | 1,445 | 1,926 | ||
| Prepaid expenses and other current assets | 481 | 712 | ||
| Short-term obligations | 385 | 4,089 | ||
| Accounts payable | 9,245 | 9,101 |
a. Determine the (1)
| Current Year | Previous Year | |
| 1. Current ratio | ||
| 2. Quick ratio |
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