PepsiCo, Inc. (PEP), the parent company of Frito-Lay^TM snack foods and Pepsi beverages, had the following current assets and current liabilities at the end of two recent years:

	Year 2 (in millions)		Year 1 (in millions)
Cash and cash equivalents	$ 9,096		$ 6,134
Short-term investments, at cost	2,913		2,592
Accounts and notes receivable, net	6,437		6,651
Inventories	2,720		3,143
Prepaid expenses and other current assets	1,865		2,143
Short-term obligations (liabilities)	4,071		5,076
Accounts payable and other current liabilities	13,507		13,016

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

	Year 2	Year 1
Current ratio
Quick ratio

b. What conclusion can be drawn from these data?