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 (in millions) Year 1 (in millions) $9,158 6,967 Cash and cash equivalents Short-term investments, at cost Accounts and notes receivable, net Inventories Current ratio Quick ratio $ 10,610 8,900 7,024 2,947 1,546 b. What conclusion can be drawn from these data? 6,694 Prepaid expenses and other current assets Short-term obligations (liabilities) 5,485 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 Year 1 2,723 908 6,892
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 (in millions) Year 1 (in millions) $9,158 6,967 Cash and cash equivalents Short-term investments, at cost Accounts and notes receivable, net Inventories Current ratio Quick ratio $ 10,610 8,900 7,024 2,947 1,546 b. What conclusion can be drawn from these data? 6,694 Prepaid expenses and other current assets Short-term obligations (liabilities) 5,485 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 Year 1 2,723 908 6,892
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text: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
(in millions)
Year 1
(in millions)
$9,158
6,967
Cash and cash equivalents
Short-term investments, at cost
Accounts and notes receivable, net
Inventories
Current ratio
Quick ratio
Year 2
$ 10,610
b. What conclusion can be drawn from these data?
8,900
7,024
2,947
1,546
Prepaid expenses and other current assets
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 1
6,694
2,723
908
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