need answer with compulsory explanation , computation for each part and steps clearly answer in text form 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 2Year 1(in millions)(in millions)Cash and cash equivalentsShort-term investments, at cost$ 10,610$9,1588,9006,967Accounts and notes receivable, net7,0246,694Inventories2,9472,723Prepaid expenses and other current assets1,546908Short-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 2Current ratioQuick ratioYear 1b. What conclusion can be drawn from these data?

a.To calculate the current ratio and quick ratio, we'll use the following formulas:Current Ratio =…

Answered: Current Position Analysis PepsiCo, Inc.…

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter16: Financial Statement Analysis

Section: Chapter Questions

Problem 4PB

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