need answer with compulsory explanation , computation for each part and steps clearly answer in text form Current Position AnalysisPepsiCo, 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 2Year 1(in millions)(in millions)Cash and cash equivalentsShort-term investments, at cost$ 10,610$9,1588,9006,967Accounts and notes receivable, net7,0246,694Inventories2,9472,723Prepaid expenses and other current assets1,546908Short-term obligations (liabilities)5,4856,892Accounts payable and other current liabilities15,01714,243a. Determine the (1) current ratio and (2) quick ratio for both years. Round to one decimal place.Year 2Current ratioQuick ratioYear 1b. What conclusion can be drawn from these data?

a.To calculate the current ratio and quick ratio, we'll use the following formulas:Current Ratio =…

Answered: Current Position Analysis PepsiCo, Inc.…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Problem 1Q

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Current Position Analysis Sherwood, Inc., the parent company of Frito-Lay snack foods and Sherwood 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 $3,599 $3,902 Short-term investments, at cost 2,556 7,247 Accounts and notes receivable, net 8,125 7,433 Inventories 2,142 2,142 Prepaid expenses and other current assets 714 792 Short-term obligations 286 3,032 Accounts payable 6,854 6,748 a. Determine the (1) current ratio and (2) quick ratio for both years. Round to one decimal place.
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: Current Year (in millions) Prior Year (in millions) Cash and cash equivalents $5,943 $3,943 Short-term investments, at cost 426 192 Accounts and notes receivable, net 6,323 4624 Inventories 3,372 2,618 Prepaid expenses and other current assets 1,505 1,194 Short-term obligations 4,898 8,292 Accounts payable 10,994 464 a. Determine the (1) current ratio and (2) quick ratio for both years. Round to one decimal place. b. What conclusions can draw from these data?
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