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 $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 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

2-Return on total assets

A company reports the following income statement and balance sheet information for the current year:

Net income$250,000Interest expense100,000Average total assets2,500,000

Determine the return on total assets. Round percentage to one decimal place.

fill in the blank 1

%