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:

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?

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Current Year (in millions) Prevlous Year (in millions) Cash and cash equivalents Short-term investments, at cost Accounts and notes receivable, net Inventories Prepaid expenses and other current assets Short-term obligations Accounts payable 6297 322 7,041 3,581 1479 4,815 12,274 $4,067 358 6,912 3,827 2,277 6,205 11,949