PepsiCo, Inc.’s financial statements are presented in Appendix A. Financial statements of The Coca-Cola Company are presented in Appendix B.

Instructions

(a) At December 29, 2007, what was PepsiCo’s largest current liability account? What were its total current liabilities? At December 31, 2007, what was Coca-Cola’s largest current liability account? What were its total current liabilities?

(b) Based on information contained in those financial statements, compute the following 2007 values for each company.

(1) Working capital.

(2) Current ratio.

(c) What conclusions concerning the relative liquidity of these companies can be drawn from these data?