Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

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 $8,721 $10,610
Short-term investments, at cost 272 8,900
Accounts and notes receivable, net 7,142 7,024
Inventories 3,128 2,947
Prepaid expenses and other current assets 2,630 1,546
Accounts payable 18,112 15,017
Other short-term liabilities 4,026 5,485

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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Management and Cost Accounting

Authors: Alnoor Bhimani, Charles T. Horngren, Srikant M. Datar, George Foster

4th edition

1405888202, 978-0273711490, 273711490, 978-1405888202

More Books

Students also viewed these Accounting questions

Question

Into which segments can this blockade perhaps be divided?

Answered: 1 week ago

Question

What should our team stop doing?

Answered: 1 week ago