Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Coke Current ratio = Current assets/current liabilities 2016 2017 2018 Current Assests $ 34,010 $ 36,545 $ 30,634 Current Liabilities $26,532 $27,194 $29,223 Current Ratio
Coke Current ratio = Current assets/current liabilities 2016 2017 2018 Current Assests $ 34,010 $ 36,545 $ 30,634 Current Liabilities $26,532 $27,194 $29,223 Current Ratio 1.28 1.34 1.05 Average Ratio 1.22 Pepsi Current ratio = Current assets/current liabilities 2016 2017 2018 Current Assests $ 26,450 $ 31,027 $ 21,893 Current Liabilities $21,135 $20,502| $22,138 Current Ratio 1.25 1.51 0.99 Average Ratio 1.25 Coke Pepsi Quick ratio (Current Assets - Inventory) / current liabilities 2016 2017 2018 Current Assets 34,010) 36,545 30,634 Inventory 2,675 2,655 2,766 Current Liabilities $26,532 $27,194 $29,223 Quick Ratio 1.18 1.25 0.95 Average Quick Ratio 1.13 Quick ratio (Current Assets - Inventory) / current liabilities 2016 2017 2018 Current Assets 26,450 31,027 21,893| Inventory 2,723 2,947 3,128 Current Liabilities $21,135 $20,502 $22,138 Quick Ratio 1.12 1.37 0.85 Average Quick Ratio 1.11 Evaluate the liquidity (ability to meet short-term obligations) of Pepsi & Coke by calculating the current and quick ratios, by averaging their rests over the past 3 years. Make your comments from the perspective of a supplier or banker. *please note I have calculated quick ratio and current ratio, please make comments from the perspective of a supplier or banker
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started