Current Position Analysis PepsiCo, 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 2 Year 1 (in millions) (in millions) Cash and cash equivalents Short-term investments, at cost $ 10,610 $9,158 8,900 6,967 Accounts and notes receivable, net 7,024 6,694 Inventories 2,947 2,723 Prepaid expenses and other current assets 1,546 908 Short-term obligations (liabilities) 5,485 6,892 Accounts payable and other current liabilities 15,017 14,243 a. Determine the (1) current ratio and (2) quick ratio for both years. Round to one decimal place. Year 2 Current ratio Quick ratio Year 1 b. What conclusion can be drawn from these data?

Current Position Analysis PepsiCo, 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 2 Year 1 (in millions) (in millions) Cash and cash equivalents Short-term investments, at cost $ 10,610 $9,158 8,900 6,967 Accounts and notes receivable, net 7,024 6,694 Inventories 2,947 2,723 Prepaid expenses and other current assets 1,546 908 Short-term obligations (liabilities) 5,485 6,892 Accounts payable and other current liabilities 15,017 14,243 a. Determine the (1) current ratio and (2) quick ratio for both years. Round to one decimal place. Year 2 Current ratio Quick ratio Year 1 b. What conclusion can be drawn from these data?

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter11: The Statement Of Cash Flows

Section: Chapter Questions

Problem 11MCQ: Chasse Building Supply Inc. reported net cash provided by operating activities of $243,000, capital...

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