eBook 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 Previous Year (in millions) (in millions) Cash and cash equivalents $2,472 $2,646 Short-term investments, at cost 1,756 4,914 Accounts and notes receivable, net 5,580 5,040 Inventories 920 613 Prepaid expenses and other current assets 306 227 Short-term obligations 245 2,604 Accounts payable 5,885 5,796 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 increased some over this time period. Both the current and quick ratios have increased Sherwood is a strong company with ample resources for meeting short-term obligations. Its liquidity as measured by the current and quick ratios has improved during this period, ariouis g a 3 ENG 12:14 PI 12/12/20 lp