Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Return on Stockholders' Equity A company reports the following: Determine (a) the return on stockholders' equity and (b) the return on common stockholders' equity. If
Return on Stockholders' Equity A company reports the following: Determine (a) the return on stockholders' equity and (b) the return on common stockholders' equity. If required, round your percentages to one decimal place. a. The rate earned on stockholders' equity % b. The rate earned on common stockholders' equity x% Current Position Analysis 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: \begin{tabular}{lrc} & CurrentYear(inmillions) & PreviousYear(inmillions) \\ \hline Cash and cash equivalents & $2,428 & $2,520 \\ Short-term investments, at cost & 1,725 & 4,680 \\ Accounts and notes receivable, net & 5,483 & 4,800 \\ Inventories & 1,971 & 1,752 \\ Prepaid expenses and other current assets & 657 & 648 \\ Short-term obligations & 350 & 3,720 \\ Accounts payable & 8,410 & 8,280 \end{tabular} a. Determine the (1) current ratio and (2) quick ratio for both years. Round answers to one decimal place. 1. Current ratio 2. Quick ratio b. The liquidity of PepsiCo has increased some over this time period. Both the current and quick ratios have increased
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started