PepsiCo, Inc. (PEP), 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:

a. Determine the
(1) Current ratio and
(2) Quick ratio for both years. Round to one decimal place.
b. What conclusions can you draw from these data?

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Year 2 (in millions) Year 1 (in millions) Cash and cash equivalents Short-term investments, at cost Accounts and notes receivable, net $9,096 2,913 6,437 5 6,134 2,592 6,651 3,143 2,143 5,076 13,016 1 Prepaid expenses and other current assets Short-term obligations (liabilities) Accounts pay 1,865 4,071 13,507 able and other current liabilities