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 $2,463 $2,610 Short-term investments, at cost 1,749 4,847 Accounts and notes receivable, net 5,560 4,971 Inventories 1,571 1,396 Prepaid expenses and other current assets 523 516 Short-term obligations 279 2,964 Accounts payable 6,701 6,596 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
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 $2,463 $2,610 Short-term investments, at cost 1,749 4,847 Accounts and notes receivable, net 5,560 4,971 Inventories 1,571 1,396 Prepaid expenses and other current assets 523 516 Short-term obligations 279 2,964 Accounts payable 6,701 6,596 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
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 | $2,463 | $2,610 | ||
| Short-term investments, at cost | 1,749 | 4,847 | ||
| Accounts and notes receivable, net | 5,560 | 4,971 | ||
| Inventories | 1,571 | 1,396 | ||
| Prepaid expenses and other current assets | 523 | 516 | ||
| Short-term obligations | 279 | 2,964 | ||
| Accounts payable | 6,701 | 6,596 |
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 |
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