1 Current Position AnalysisSherwood, 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 recentyears:Current Year(in millions)$2,449$2,5171,7404,6755,5314,796Inventories1,458972Prepaid expenses and other current assets4863604,129389Short-term obligations9,3319,191Accounts payablea. Determine the (1) current ratio and (2) quick ratio for both years. Round to one decimal place.Previous YearCurrent YearCash and cash equivalentsShort-term investments, at costAccounts and notes receivable, netPrevious Year(in millions)1. Current ratio2. Quick ratiob. The liquidity of Sherwood has)company withduring this period.Sherwood is asome over this time period. Both the current and quick ratios haveresources for meeting short-term obligations. Its liquidity as measured by the current and quick ratios has

Financial ratios are ratios which depict the line items of the balance sheet and it helps in…

Answered: Current Position Analysis Sherwood,…

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter8: Current And Contingent Liabilities

Section: Chapter Questions

Problem 61E: Recording Various Liabilities Glenview Hardware had the following transactions that produced...

See similar textbooks

Similar questions

Current Position Analysis PepsiCo, Inc., the parent company of Frito-Lay snack foods and Pepsi beverages, had the following current assets and current liabilities at the end of two recent years: Current Year Previous Year (in millions) (in millions) $5,173 $5,636 3,674 10,467 11,679 10,735 2,099 933 31 700 345 373 3,962 8,957 8,818 a. Determine the (1) current ratio and (2) quick ratio for both years. Round answers to one decimal place. Previous Year Cash and cash equivalents Short-term investments, at cost Accounts and notes receivable, net Inventories Prepaid expenses and other current assets Short-term obligations Accounts payable 1. Current ratio 2. Quick ratio Current Year
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 $3,599 $3,902 Short-term investments, at cost 2,556 7,247 Accounts and notes receivable, net 8,125 7,433 Inventories 2,142 2,142 Prepaid expenses and other current assets 714 792 Short-term obligations 286 3,032 Accounts payable 6,854 6,748 a. Determine the (1) current ratio and (2) quick ratio for both years. Round to one decimal place.
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 $4,417 $4,604 Short-term investments, at cost 3,137 8,550 Accounts and notes receivable, net 9,972 8,770 Inventories 1,143 762 Prepaid expenses and other current assets 381 282 Short-term obligations 305 3,236 Accounts payable 7,315 7,204 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 b. The liquidity 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…
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 $2,463 $2,610 Short-term investments, at cost 1,749 4,847 Accounts and notes receivable, net 5,560 4,971 Inventories 1,571 1,396 Prepaid expenses and other current assets 523 516 Short-term obligations 279 2,964 Accounts payable 6,701 6,596 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
Current Position Analysis Pepsico, Inc., the parent company of Frito-Lay snack foods and Pepsi 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 $2,794 $2,659 Short-term investments, at cost 1,985 4,937 Accounts and notes receivable, net 6,309 5,064 Inventories 1,386 924 Prepaid expenses and other current assets 462 342 Short-term obligations 370 3,925 Accounts pavable 8,870 8,735 a. Determine the (1) current ratio and (2) quick ratio for both years. Round answers to one decimal place. Current Year Previous Year 1. Current ratio 2. Quick ratio
Assets Current assets Net fixed assets INCOME STATEMENT, 2022 (Figures in $ millions) Revenue Cost of goods sold Depreciation Interest expense 2021 $ 101 2022 $ 195 910 1,010 $ 2,005 1,085 405 251 Req A and B Req C and D BALANCE SHEET AT END OF YEAR (Figures in $ millions) Liabilities and Shareholders' Equity Current liabilities Long-term debt Req E Complete this question by entering your answers in the tabs below. a&b. What is shareholders' equity in 2021 and 2022? c&d. What is net working capital in 2021 and 2022? e. What are taxes paid in 2022? Assume the firm pays taxes equal to 21% of taxable income. f. What is cash provided by operations during 2022? g.Net fixed assets increased from $910 million to $1,010 million during 2022. What must have been South Sea's gross investment in fixed assets during 2022? Answer is complete but not entirely correct. h. If South Sea reduced its outstanding accounts payable by $46 million during the year, what must have happened to its other current…
Vertical Analysis of Balance Sheet Balance sheet data for Hanes Company on December 31, the end of the fiscal year, are shown below. 20Y2 20Y1 Current assets 346,560 203,000 Property, plant, and equipment 595,650 527,800 Intangible assets 140,790 81,200 Current liabilities 238,260 129,920 Long-term liabilities 433,200 341,040 Common stock 119,130 113,680 Retained earnings 292,410 227,360 Prepare a comparative balance sheet for 20Y2 and 20Y1, stating each asset as a percent of total assets and each liability and stockholders' equity item as a percent of the total liabilities and stockholders' equity. If required, round percentages to one decimal place. Hanes Company Comparative Balance Sheet December 31, 20Y2 and 20Y1 20Y2 Amount 20Y2 Percent 20Y1 Amount 20Y1 Percent Assets Current assets $346,560 % $203,000 % Property, plant, and equipment 595,650 % 527,800 % Intangible assets 140,790 % 81,200 % Total…
View Policies Current Attempt in Progress The comparative statement of financial position for Sunland Corporation shows the following noncash current asset and liability accounts at March 31: 2021 2020 Accounts receivable $65,000 $42,000 Inventory 80,000 63,500 Accounts payable 35,000 44,000 Dividends payable 1,400 2,400 Sunland's statement of income reported the following selected information for the year ended March31, 2021: net income was $270,000, depreciation expense was $65,000, and a loss on the disposal of land was $15,000. Sunland uses a perpetual inventory system. Calculate net cash provided (used) by operating activities using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).) SUNLAND CORPORATION Statement of Cash Flows (Partial) Operating activities Adjustments to reconcile net income to
Randall Corporation reported the following revenue data:Year Net revenues (in millions)$$$$6,8007,0046,7327,2762016201720182019Use 2016 as the base year. The trend percentage in 2019 is closest toa. 93%.b. 104%.c. 107%.d. 112%
View Policies Current Attempt in Progress For its fiscal year ending October 31, 2025, Cullumber Corporation reports the following partial data. Income before income taxes Income tax expense (20% × $390,600) Income from continuing operations Loss on discontinued operations Net income $502,200 78,120 424,080 111,600 $312,480 The loss on discontinued operations was comprised of a $46,500 loss from operations and a $65,100 loss from disposal. The income tax rate is 20% on all items. (a) Prepare a correct partial income statement, beginning with income before income taxes. CULLUMBER CORPORATION Income Statement (Partial)
Current Position Analysis: PepsiCo, Inc., the parent company of Frito-Lay snack foods and Pepsi beverages, had the following current assets and current liabilities at the end of two recent years: Current Year (in millions) Prior Year (in millions) Cash and cash equivalents $5,943 $3,943 Short-term investments, at cost 426 192 Accounts and notes receivable, net 6,323 4624 Inventories 3,372 2,618 Prepaid expenses and other current assets 1,505 1,194 Short-term obligations 4,898 8,292 Accounts payable 10,994 464 a. Determine the (1) current ratio and (2) quick ratio for both years. Round to one decimal place. b. What conclusions can draw from these data?
Vertical Analysis of Balance Sheet Balance sheet data for Kwan Company on December 31, the end of two recent fiscal years, follow: Current Year Previous YearCurrent assets $2,352,000 $1,900,000Property, plant, and equipment 4,536,000 4,712,000Intangible assets 1,512,000 988,000Current liabilities 1,848,000 1,444,000Long-term liabilities 2,520,000 2,888,000Common stock 1,260,000 836,000Retained earnings 2,772,000, 2,432,000Prepare a comparative balance sheet for both years, stating each asset as a percent of total assets and each liability and stockholders' equity item as a percent…

SEE MORE QUESTIONS

Recommended textbooks for you

Cornerstones of Financial Accounting

Accounting

ISBN:

9781337690881

Author:

Jay Rich, Jeff Jones

Publisher:

Cengage Learning

Cornerstones of Financial Accounting

Accounting

ISBN:

9781337690881

Author:

Jay Rich, Jeff Jones

Publisher:

Cengage Learning

SEE MORE TEXTBOOKS