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: a. Determine the (1) current ratio and (2) quick ratio for both years. Round to one decimal place.b. What conclusions can you draw from these data about PepsiCo’s liquidity? Current Year(in millions)$ 9,1586,967Previous Year(in millions)$ 9,0962,913Cash and cash equivalentsShort-term investments, at costAccounts and notes receivable, net6,6942,7236,4372,720InventoriesPrepaid expenses and other current assetsShort-term obligationsAccounts payable1,5471,8656,89214,2434,07113,507

Name: PepsiCo, Inc. (PEP), the parent company of Frito-Lay snack foods and P
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Description: 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: a. Determine the (1) current ratio and (2) quick ratio for both years. Roun

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Answered: Current Year (in millions) $ 9,158…

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 snack foods and Pepsi beverages, had the following current assets and current liabilities at the end of two recent years:

a. Determine the (1) current ratio and (2) quick ratio for both years. Round to one decimal place.
b. What conclusions can you draw from these data about PepsiCo’s liquidity?

Current Year
(in millions)
$ 9,158
6,967
Previous Year
(in millions)
$ 9,096
2,913
Cash and cash equivalents
Short-term investments, at cost
Accounts and notes receivable, net
6,694
2,723
6,437
2,720
Inventories
Prepaid expenses and other current assets
Short-term obligations
Accounts payable
1,547
1,865
6,892
14,243
4,071
13,507

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