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:

(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 thesedata?

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Dec. 30, 2006 Dec. 31, 2005 (in millions) (in millions) $1,651 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 and other current liabilities Income taxes payable $1,716 3,166 3,261 1,693 1,171 3,725 1,926 657 274 6,496 618 2,889 5,971 546 90