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Sherwood, Inc., the parent company of Tasty snack foods and Super beverages, had the following...

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Accounting

Sherwood, Inc., the parent company of Tasty snack foods and Super 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 $4,667 $4,797
Short-term investments, at cost 3,315 8,908
Accounts and notes receivable, net 10,538 9,137
Inventories 1,389 926
Prepaid expenses and other current assets 463 343
Short-term obligations 370 3,934
Accounts payable and other current liabilities 8,770 8,020
Income taxes payable 120 736

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 solvency of Sherwood has ---------- some over this time period. Both the current and quick ratios have --------. Sherwood is a -------- company with ------ resources for meeting short-term obligations. Its solvency as measured by the current and quick ratios has ----- during this period.

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