PepsiCo, inc. (PEP), the parent company of Frito-Lay snack foods and Pepsi beverages, had the following current
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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?
Transcribed Image Text:
Year 2 (in millions) Year 1 (in millions) Cash and cash equivalents $10,610 $ 9,158 Short-term investments, at cost 8,900 6,967 Accounts and notes receivable, net 7,024 6,694 Inventories 2,947 2,723 Prepaid expenses and other current assets Short-term obligations (liabilities) 1,546 908 5,485 6,892 Accounts payable and other current liabilities 15,017 14,243
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a 1 2 b The liquidity of PepsiCo has increased some over this time period Both ...View the full answer
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I have done MS finance and expertise in the field of Accounting, finance, cost accounting, security analysis and portfolio management and management, MS office is at my fingertips, I want my client to take advantage of my practical knowledge. I have been mentoring my client on a freelancer website from last two years, Currently I am working in Telecom company as a financial analyst and before that working as an accountant with Pepsi for one year. I also join a nonprofit organization as a finance assistant to my job duties are making payment to client after tax calculation, I have started my professional career from teaching I was teaching to a master's level student for two years in the evening.
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