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a. Determine the (1) current ratio and (2) quick ratio for both years. Current Year Previous Year 1. Current ratio 2. Quick ratio

a. Determine the (1) current ratio and (2) quick ratio for both years. Current Year Previous Year 1. Current ratio 2. Quick ratio

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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 $8,721 $10,610 Short-term investments, at cost 272 8,900 Accounts and notes receivable, net 7,142 7,024 Inventories 3,128 2,947 Prepaid expenses and other current assets 2,630 1,546 Accounts payable 18,112 15,017 Other short-term liabilities 4,026 5,485 a. Determine the (1) current ratio and (2) quick ratio for both years. Round answers to one decimal place. Current Year Previous Year 1. Current ratio 2. Quick ratio
Transcribed Image Text: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 $8,721 $10,610 Short-term investments, at cost 272 8,900 Accounts and notes receivable, net 7,142 7,024 Inventories 3,128 2,947 Prepaid expenses and other current assets 2,630 1,546 Accounts payable 18,112 15,017 Other short-term liabilities 4,026 5,485 a. Determine the (1) current ratio and (2) quick ratio for both years. Round answers to one decimal place. Current Year Previous Year 1. Current ratio 2. Quick ratio
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