Current position analysis OBJ. 2 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:

Current year

(in millions)

Previous year

(in millions)

Cash and cash equivalents $ 6,297 $ 4,067 Short-term investments, at cost 322 358 Accounts and notes receivable, net 7,041 6,912 Inventories 3,581 3,827 Prepaid expenses and other current assets 1,479 2,277 Short-term obligations 4,815 6,205 Accounts payable 12,274 11,949

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?