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Current Position Analysis Sherwood, Inc., had the following current assets and current liabilities at the end of two recent years: Year 2 (in millions) Year

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Current Position Analysis Sherwood, Inc., had the following current assets and current liabilities at the end of two recent years: Year 2 (in millions) Year 1 (in millions) Cash and cash equivalents $4,038 $4,170 Short-term investments, at cost 2,868 7,743 Accounts and notes receivable, net 9,117 7,942 Inventories 2,861 3,814 Prepaid expenses and other current assets 954 1,411 Short-term obligations (liabilities) 305 3,240 Accounts payable and other current liabilities 7,226 6,604 a. Determine the (1) current ratio and (2) quick ratio for both years. Round to one decimal place. Year 2 Year 1 Current ratio Quick ratio b. What conclusion can be drawn from these data

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