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)Cash and cash equivalents$ 9,096 $ 6,134 Short-term investments, at cost2,913 2,592 Accounts and notes receivable, net6,437 6,651 Inventories2,720 3,143 Prepaid expenses and other current assets1,865 2,143 Short-term obligations (liabilities)4,071 5,076 Accounts payable and other current liabilities13,507 13,016 a. Determine the (1) current ratio and (2) quick ratio for both years. Round to one decimal place. Year 2Year 1Current ratio????????Quick ratio????????

Name: PepsiCo, Inc. (PEP), the parent company of Frito-LayTM snack foods and
Uploaded: 2022-11-18T00:26:54.000Z
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Description: 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)Cash and cash equivalents$ 9,096 $

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Answered: PepsiCo, Inc. (PEP), the parent company…

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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PepsiCo, Inc. (PEP), the parent company of Frito-Lay^TM 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)
Cash and cash equivalents	$ 9,096		$ 6,134
Short-term investments, at cost	2,913		2,592
Accounts and notes receivable, net	6,437		6,651
Inventories	2,720		3,143
Prepaid expenses and other current assets	1,865		2,143
Short-term obligations (liabilities)	4,071		5,076
Accounts payable and other current liabilities	13,507		13,016

a. Determine the (1) current ratio and (2) quick ratio for both years. Round to one decimal place.

	Year 2	Year 1
Current ratio	????	????
Quick ratio	????	????

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