PepsiCo, Inc., the parent company of Frito-LayTM 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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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 Accounts payable and other current liabilities Income taxes payable $1,651 1,171 3,725 1,926 657 274 $1,716 3,166 3,261 1,693 618 2,889 5,971 546 6,496 90