Current Position AnalysisPepsiCo, Inc. (PEP), the parent company of Frito-LayTM snack foods and Pepsi beverages, had the following current assets and current liabilities at the end of two recent years:Year 2(in millions)Year 1(in millions)$9,1586,967Cash and cash equivalentsShort-term investments, at costAccounts and notes receivable, netInventoriesCurrent ratioQuick ratioYear 2$ 10,610b. What conclusion can be drawn from these data?8,9007,0242,9471,546Prepaid expenses and other current assetsShort-term obligations (liabilities)5,4856,892Accounts payable and other current liabilities15,01714,243a. Determine the (1) current ratio and (2) quick ratio for both years. Round to one decimal place.Year 16,6942,723908

Current ratio is the ratio between current assets and current liabilities. It is calculated by…

Current Position Analysis PepsiCo, Inc. (PEP), the parent company of Frito-LayTM snack foods and Pepsi beverages, had the following current assets and current liabilities at the end of two recent years: Year 2 (in millions) Year 1 (in millions) $9,158 6,967 Cash and cash equivalents Short-term investments, at cost Accounts and notes receivable, net Inventories Current ratio Quick ratio $ 10,610 8,900 7,024 2,947 1,546 b. What conclusion can be drawn from these data? 6,694 Prepaid expenses and other current assets Short-term obligations (liabilities) 5,485 Accounts payable and other current liabilities 15,017 14,243 a. Determine the (1) current ratio and (2) quick ratio for both years. Round to one decimal place. Year 2 Year 1 2,723 908 6,892

Current Position Analysis PepsiCo, Inc. (PEP), the parent company of Frito-LayTM snack foods and Pepsi beverages, had the following current assets and current liabilities at the end of two recent years: Year 2 (in millions) Year 1 (in millions) $9,158 6,967 Cash and cash equivalents Short-term investments, at cost Accounts and notes receivable, net Inventories Current ratio Quick ratio $ 10,610 8,900 7,024 2,947 1,546 b. What conclusion can be drawn from these data? 6,694 Prepaid expenses and other current assets Short-term obligations (liabilities) 5,485 Accounts payable and other current liabilities 15,017 14,243 a. Determine the (1) current ratio and (2) quick ratio for both years. Round to one decimal place. Year 2 Year 1 2,723 908 6,892

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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