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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 $3,599   $3,902   Short-term investments, at cost 2,556   7,247   Accounts and notes receivable, net 8,125   7,433   Inventories 2,142   2,142   Prepaid expenses and other current assets 714   792   Short-term obligations 286   3,032   Accounts payable 6,854   6,748   a.  Determine the (1) current ratio and (2) quick ratio for both years. Round to one decimal place.

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 $3,599   $3,902   Short-term investments, at cost 2,556   7,247   Accounts and notes receivable, net 8,125   7,433   Inventories 2,142   2,142   Prepaid expenses and other current assets 714   792   Short-term obligations 286   3,032   Accounts payable 6,854   6,748   a.  Determine the (1) current ratio and (2) quick ratio for both years. Round to one decimal place.

FINANCIAL ACCOUNTING
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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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)		 Previous Year
(in millions)
Cash and cash equivalents $3,599   $3,902  
Short-term investments, at cost 2,556   7,247  
Accounts and notes receivable, net 8,125   7,433  
Inventories 2,142   2,142  
Prepaid expenses and other current assets 714   792  
Short-term obligations 286   3,032  
Accounts payable 6,854   6,748  

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

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) Previous Year (in millions) $3,599 2,556 8,125 2,142 714 Cash and cash equivalents Short-term investments, at cost Accounts and notes receivable, net Inventories Prepaid expenses and other current assets Short-term obligations 3,032 Accounts payable 6,854 6,748 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 b. The liquidity of Sherwood has company with during this period. $3,902 7,247 7,433 2,142 792 286 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
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) Previous Year (in millions) $3,599 2,556 8,125 2,142 714 Cash and cash equivalents Short-term investments, at cost Accounts and notes receivable, net Inventories Prepaid expenses and other current assets Short-term obligations 3,032 Accounts payable 6,854 6,748 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 b. The liquidity of Sherwood has company with during this period. $3,902 7,247 7,433 2,142 792 286 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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