Current Position Analysis 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 (in millions) Previous Year (in millions) $5,173 3,674 Cash and cash equivalents Short-term investments, at cost Accounts and notes receivable, net Inventories $5,636 10,467 10,735 933 Prepaid expenses and other current assets 345 Short-term obligations 373 3,962 Accounts payable 8,957 8,818 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 11,679 2,099 700

Current Position Analysis 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 (in millions) Previous Year (in millions) $5,173 3,674 Cash and cash equivalents Short-term investments, at cost Accounts and notes receivable, net Inventories $5,636 10,467 10,735 933 Prepaid expenses and other current assets 345 Short-term obligations 373 3,962 Accounts payable 8,957 8,818 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 11,679 2,099 700

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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