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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 Year 1 (in
Current Position Analysis Sherwood, Inc., had the following current assets and current liabilities at the end of two recent years: Year 2 Year 1 (in millions) (in millions) Cash and cash equivalents Short-term investments, at cost Accounts and notes receivable, net Inventories Prepaid expenses and other current assets Short-term obligations (liabilities) Accounts payable and other current liabilities $4,038 2,868 9,117 2,861 954 305 7,226 $4,170 7,743 7,942 3,814 1,411 3,240 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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