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 Intro Concepts Meth/Uses
14th Edition
ISBN:9781285595047
Author:Weil
Publisher:Weil
Chapter7: Introduction To Financial Statement Analysis
Section: Chapter Questions
Problem 22E
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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)
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