Current Position Analysis Sherwood, Inc., had the following current assets and current liabilities at the end of two recent Year 1 Year 2 (in millions) (in millions) Cash and cash equivalents $2,948 $3,181 Short-term investments, at cost 2,094 5,907 Accounts and notes receivable, net 6,658 6,059 Inventories 2,925 3,252 Prepaid expenses and other current assets 975 Short-term obligations 260 1,203 2,762 5,631 517 Accounts payable and other current liabilities 6,155 Income taxes payable 85 a. Determine the (1) current ratio and (2) quick ratio for both years. Round to one decimal Year 2 Year 1 Current ratio 2.40 2.20 Quick ratio 1.95 1.84 b. What conclusion can be drawn from these data? Sherwood's liquidity position has improved during the period