Current position analysis

PepsiCo, Inc. (PEP), 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	$14,870		$5,101
Short-term investments, at cost	7,818		4,069
Accounts and notes receivable, net	6,430		7,190
Inventories	3,302		3,291
Prepaid expenses and other current assets	1,627		1,820
Short-term obligations	7,117		3,855
Accounts payable	14,708		12,789

This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below.

Determine the (1) current ratio and (2) quick ratio for both years. Round your answers to one decimal place.

	Current Year	Previous Year
1. Current ratio	fill in the blank	fill in the blank
2. Quick ratio	fill in the blank	fill in the blank

The liquidity of PepsiCo has

increased; decreased; remained constant

1. some over this time period. The current ratio hasand the quick ratio has. PepsiCo is acompany withresources for meeting short-term obligations. Its liquidity as measured by the current and quick ratios hasduring this

improved; deteriorated; remained constant

ample insufficient

strong or weak

increased; decreased; remained constant

increased; decreased; remained constant