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	$1,956		$1,675
Short-term investments, at cost	1,389		3,110
Accounts and notes receivable, net	4,415		3,189
Inventories	2,910		2,911
Prepaid expenses and other current assets	970		1,076
Short-term obligations	388		4,120
Accounts payable	9,312		9,170

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