Current Position Analysis

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 $$1,851$ $$1,760$

Short$-$term investments, at cost $1,3153,268$

Accounts and notes receivable, net $4,1783,352$

Inventories $2,2953,059$

Prepaid expenses and other current assets $7651,131$

Short$-$term obligations $2452,598$

Accounts payable $5,8755,782$

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

Current Year Previous Year

$1.$ Current ratio fill in the blank $1$

fill in the blank $2$

$2.$ Quick ratio fill in the blank $3$

fill in the blank $4$

b$.$ The liquidity of PepsiCo has

some over this time period. Both the current and quick ratios have