Current Position Analysis Sherwood, Inc., the parent company of Tasty snack foods and Super beverages,...
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Accounting
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
$5,752
$6,293
Short-term investments, at cost
4,085
11,688
Accounts and notes receivable, net
12,987
11,988
Inventories
2,140
951
Prepaid expenses and other current assets
713
352
Short-term obligations
380
4,039
Accounts payable
9,130
8,991
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 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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