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	$2,270		$2,391
Short-term investments, at cost	1,613		4,441
Accounts and notes receivable, net	5,126		4,556
Inventories	2,079		1,386
Prepaid expenses and other current assets	693		512
Short-term obligations	277		2,942
Accounts payable	6,653		6,548

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
2. Quick ratio

b. The liquidity of PepsiCo has some over this time period. Both the current and quick ratios have . PepsiCo is a company with resources for meeting short-term obligations. Its liquidity as measured by the current and quick ratios has during this period.