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 $6,297 $4,067 Short-term investments, at cost 322 358 Accounts and notes receivable, net 7,041 6,912 Inventories 3,581 3,827 Prepaid expenses and other current assets 1,479 2,277 Short-term obligations 4,815 6,205 Accounts payable 12,274 11,949 a. Determine the (1) current ratio and (2) quick ratio for both years. Round to one decimal place. Current Year Previous Year 1. Current ratio 1.1 1.0 2. Quick ratio b. The solvency of PepsiCo has increased slightly over this time period. The current ratio has increased and the quick ratio has increased . PEPSICO appears to have ample resources to meet its short term obligations, and these resources have remained constant during this time period.