epsiCo, Inc. (PEP), 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) Cash and cash equivalents $21,243 $10,202 Short-term investments, at cost 8,540 5,297 Accounts and notes receivable, net 6,361 6,644 Inventories 2,814 2,801 Prepaid expenses and other current assets 1,602 1,863 Short-term obligations 6,613 3,718 Accounts payable 13,667 12,334 Determine the (1) current ratio and (2) quick ratio for both years. Round your answers to one decimal place. Current Year Previous Year 1. Current ratio 2. Quick ratio
epsiCo, Inc. (PEP), 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) Cash and cash equivalents $21,243 $10,202 Short-term investments, at cost 8,540 5,297 Accounts and notes receivable, net 6,361 6,644 Inventories 2,814 2,801 Prepaid expenses and other current assets 1,602 1,863 Short-term obligations 6,613 3,718 Accounts payable 13,667 12,334 Determine the (1) current ratio and (2) quick ratio for both years. Round your answers to one decimal place. Current Year Previous Year 1. Current ratio 2. Quick ratio
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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epsiCo, Inc. (PEP), 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) |
|||
| Cash and cash equivalents | $21,243 | $10,202 | ||
| Short-term investments, at cost | 8,540 | 5,297 | ||
| Accounts and notes receivable, net | 6,361 | 6,644 | ||
| Inventories | 2,814 | 2,801 | ||
| Prepaid expenses and other current assets | 1,602 | 1,863 | ||
| Short-term obligations | 6,613 | 3,718 | ||
| Accounts payable | 13,667 | 12,334 |
Determine the (1)
| Current Year | Previous Year | |
| 1. Current ratio | ||
| 2. Quick ratio |
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