PepsiCo, 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:Year 2Year 1(in millions)(in millions)Cash and cash equivalents i$ 10,610$9,158Short-term investments, at cost8,9006,967Accounts and notes receivable, net7,0246,694Inventories2,9472,723Prepaid expenses and other current assets1,546908Short-term obligations (liabilities)5,4856,892Accounts payable and other current liabilities15,01714,243a. Determine the (1) current ratio and (2) quick ratio for both years. Round to one decimal place.Current ratioQuick ratioYear 2XYear 1b. What conclusion can be drawn from these data?

Current and quick ratio are the liquidity ratios which are measured for determining the current or…

PepsiCo, 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: Year 1 Year 2 (in millions) (in millions) $ 10,610 $9,158 6,967 6,694 2,723 908 Cash and cash equivalents Short-term investments, at cost Accounts and notes receivable, net 7,024 Inventories 2,947 Prepaid expenses and other current assets 1,546 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 Current ratio Quick ratio Year 2 x b. What conclusion can be drawn from these data? 8,900

PepsiCo, 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: Year 1 Year 2 (in millions) (in millions) $ 10,610 $9,158 6,967 6,694 2,723 908 Cash and cash equivalents Short-term investments, at cost Accounts and notes receivable, net 7,024 Inventories 2,947 Prepaid expenses and other current assets 1,546 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 Current ratio Quick ratio Year 2 x b. What conclusion can be drawn from these data? 8,900

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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