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) Prior Year (in millions) Cash and cash equivalents $5,943 $3,943 Short-term investments, at cost 426 192 Accounts and notes receivable, net 6,323 4624 Inventories 3,372 2,618 Prepaid expenses and other current assets 1,505 1,194 Short-term obligations 4,898 8,292 Accounts payable 10,994 464 a. Determine the (1) current ratio and (2) quick ratio for both years. Round to one decimal place. b. What conclusions can draw from these data?
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) Prior Year (in millions) Cash and cash equivalents $5,943 $3,943 Short-term investments, at cost 426 192 Accounts and notes receivable, net 6,323 4624 Inventories 3,372 2,618 Prepaid expenses and other current assets 1,505 1,194 Short-term obligations 4,898 8,292 Accounts payable 10,994 464 a. Determine the (1) current ratio and (2) quick ratio for both years. Round to one decimal place. b. What conclusions can draw from these data?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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) | Prior Year (in millions) | |
|---|---|---|
| Cash and cash equivalents | $5,943 | $3,943 |
| Short-term investments, at cost | 426 | 192 |
| Accounts and notes receivable, net | 6,323 | 4624 |
| Inventories | 3,372 | 2,618 |
| Prepaid expenses and other current assets | 1,505 | 1,194 |
| Short-term obligations | 4,898 | 8,292 |
| Accounts payable | 10,994 | 464 |
a. Determine the (1)
b. What conclusions can draw from these data?
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