Current Position Analysis Sherwood, Inc., the parent company of Frito-Lay snack foods and Sherwood beverages, had the following current assets and current abilities at the end of two recent years: Current Year Previous Year (in millions) (in millions) Cash and cash equivalents $1,387 $1,357 Short-term investments, at cost 985 2,520 Accounts and notes receivable, net 3,130 2,585 Inventories 2,948 2,359 Prepaid expenses and other current assets 982 872 Short-term obligations 314 3,339 Accounts payable 7,546 7,431 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 remained constant company with during this period some over this time period. Both the current and quick ratios have remained constant Sherwood is a resources for meeting short-term obligations. Its liquidity as measured by the current and quick ratios has