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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
PepsiCo, Inc. (PEP), the parent company of Frito-LayTM 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 | $ 10,610 | $ 9,158 | ||
Short-term investments, at cost | 8,900 | 6,967 | ||
Accounts and notes receivable, net | 7,024 | 6,694 | ||
Inventories | 2,947 | 2,723 | ||
Prepaid expenses and other current assets | 1,546 | 908 | ||
Short-term obligations (liabilities) | 5,485 | 6,892 | ||
Accounts payable and other current liabilities | 15,017 | 14,243 |
a. Determine the (1) current ratio and (2) quick ratio for both years. Round to one decimal place.
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