The following information was summarized from the balance sheets of the The Coca-Cola Company and Subsidiaries at December 31, 2010, and PepsiCo, Inc., and Subsidiaries at December 25, 2010:

*Described as ''trade accounts receivable, less allowances'' by Coca-Cola.
Required
1. Using the information provided, compute the following for each company at the end of 2010:
a. Current ratio
b. Quick ratio
2. Coca-Cola reported cash flow from operations of $9,532 million during 2010. PepsiCo reported cash flow from operations of $8,448 million. Current liabilities reported by Coca- Cola at December 31, 2009, and PepsiCo at December 26, 2009, were $13,721 million and $8,756 million, respectively. Compute the cash flow from operations to current liabilities ratio for each company for 2010.
3. Comment briefly on the liquidity of each of these two companies. Which appears to be more liquid?
4. What other ratios would help you more fully assess the liquidity of these companies?

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(in millions) Coca-Cola PepsiCo $ 8,517 $ Cash and cash equivalents Short-term investments Marketable securities Accounts and notes receivables, net Inventories Prepaid expenses and other current assets 2,682 138 4,430 2,650 3,162 $21,579 $18,508 426 6,323 3,372 1,505 $17,569 $15,892 Total current assets Current liabilities