Current Year (in millions) $ 9,158 6,967 Previous Year (in millions) $ 9,096 2,913 Cash and cash equivalents Short-term investments, at cost Accounts and notes receivable, net 6,694 2,723 6,437 2,720 Inventories Prepaid expenses and other current assets Short-term obligations Accounts payable 1,547 1,865 6,892 14,243 4,071 13,507

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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PepsiCo, Inc. (PEP), 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:

 

a. Determine the (1) current ratio and (2) quick ratio for both years. Round to one decimal place.
b. What conclusions can you draw from these data about PepsiCo’s liquidity?

Current Year
(in millions)
$ 9,158
6,967
Previous Year
(in millions)
$ 9,096
2,913
Cash and cash equivalents
Short-term investments, at cost
Accounts and notes receivable, net
6,694
2,723
6,437
2,720
Inventories
Prepaid expenses and other current assets
Short-term obligations
Accounts payable
1,547
1,865
6,892
14,243
4,071
13,507
Transcribed Image Text:Current Year (in millions) $ 9,158 6,967 Previous Year (in millions) $ 9,096 2,913 Cash and cash equivalents Short-term investments, at cost Accounts and notes receivable, net 6,694 2,723 6,437 2,720 Inventories Prepaid expenses and other current assets Short-term obligations Accounts payable 1,547 1,865 6,892 14,243 4,071 13,507
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