PepsiCo, Inc., the parent company of Frito-Lay snack foods and Pepsi beverages, had the following current assets

PepsiCo, Inc., the parent company of Frito-Layâ„¢ 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
(2) Quick ratio for both years. Round to one decimal place.
b. What conclusions can you draw from thesedata?

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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 Inventories Prepaid expenses and other current assets Short-term obligations (liabilities) Accounts payable and other current liabilities Income taxes payable 4,067 358 6,912 3,827 2,277 6,205 11,757 192 5,943 426 6,323 3,372 1,505 4,898 10,923 71