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 about PepsiCo’s liquidity?

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Current Year (in millions) $ 8,721 Prier Year (in millions) $10,610 Cash and cash equivalents Short-term investments, at cost Accounts and notes receivable, net Inventories 272 8,900 7,142 7,024 3,128 2,947 Prepaid expenses and other current assets Accounts payable 2.630 1,546 18,112 15.017 Other short-term liabilities 4,026 5,485