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Income statement data for Winthrop Company for two recent years ended December 31, are as follows: Current Year Previous Year Sales $806,000 695,400 $650,000 570,000 Cost of goods sold Gross profit $110,600 $80,000 Selling expenses $31,920 $28,000 Administrative expenses 28,060 23,000 Total operating expenses $59,980 $51,000 Income before income tax $50,620 $29,000 11,600 Income tax expenses 20,200 Net income $30,420 $17,400 a. Prepare a comparative income statement with horizontal analysis, indicating the increase (decrease) for the current year when compared with the previous year. If required, round to one decimal place. Winthrop Company Comparative Income Statement For the Years Ended December 31 Current Previous Increase Increase year year (Decrease) (Decrease) Amount Amount Amount Percent $806,000 $650,000 $ % Sales Cost of goods sold 695,400 570,000 % Gross profit $110,600 $80,000 % Selling expenses $31,920 $28,000 $ % Administrative expenses 28,060 23,000 % Total operating expenses $59,980 $51,000 $ % Income before income tax % $50,620 20,200 $29,000 $ 11,600 Income tax expense % Net income $30,420 $17,400 $ % 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 Previous Year (in millions) (in millions) Cash and cash equivalents $5,202 $5,657 Short-term investments, at cost 3,695 10,507 Accounts and notes receivable, net 11,746 10,776 Inventories 2,212 983 Prepaid expenses and other current assets 737 364 Short-term obligations 393 4,176 Accounts payable 9,437 9,294 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 company with b. The liquidity of PepsiCo has some over this time period. Both the current and quick ratios have resources for meeting short-term obligations. Its liquidity as measured by the current and quick ratios has PepsiCo is a during this period