Question: 2. Using the ratios and information given below for PepCo Company, analyze the short-term liquidity of the firm. 2015 2014 Current ratio .86 .80 Quick

2. Using the ratios and information given below for PepCo Company, analyze the short-term liquidity of the firm.

2015 2014

Current ratio .86 .80

Quick ratio .65 .61

Cash flow liquidity ratio .69 .62

Average collection period 32 days 30 days

Days inventory held 74 days 74 days

Days payable outstanding 157days 163 days

Cash conversion cycle (51 days) (59 days)

Cash flow from operations (in millions) $2,508 $2,232

Net sales (in millions) $13,957 $13,074

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