Current Position Analysis

Sherwood, Inc., the parent company of Frito-Lay snack foods and Sherwood 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	$3,265		$3,389
Short-term investments, at cost	2,319		6,295
Accounts and notes receivable, net	7,374		6,456
Inventories	1,325		1,767
Prepaid expenses and other current assets	442		654
Short-term obligations	236		2,502
Accounts payable	5,654		5,568

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	fill in the blank 1	fill in the blank 2
2. Quick ratio	fill in the blank 3	fill in the blank 4