FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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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 Previous Year
(in millions) (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)
b. What conclusions can you draw from these data about PepsiCo’s liquidity?
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