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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
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 | $1,899 | $1,898 | ||
Short-term investments, at cost | 1,349 | 3,524 | ||
Accounts and notes receivable, net | 4,288 | 3,615 | ||
Inventories | 3,533 | 3,770 | ||
Prepaid expenses and other current assets | 1,177 | 1,394 | ||
Short-term obligations | 377 | 4,002 | ||
Accounts payable | 9,043 | 8,908 |
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 increased some over this time period. Both the current and quick ratios have increased .
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