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: Current Year(in millions)Previous Year(in millions)Cash and cash equivalents$25,551 $9,216 Short-term investments, at cost7,238 4,835 Accounts and notes receivable, net7,097 7,405 Inventories2,641 2,635 Prepaid expenses and other current assets1,647 1,805 Short-term obligations7,425 3,820 Accounts payable15,345 12,674 This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below. Open spreadsheet Determine the (1) current ratio and (2) quick ratio for both years. Round your answers to one decimal place. Current YearPrevious Year1. Current ratiofill in the blank 2fill in the blank 32. Quick ratiofill in the blank 4fill in the blank 5

Current ratio is the measure that helps the entity in determining its liquidity position. It is…

Answered: PepsiCo, Inc. (PEP), the parent company…

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

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Problem 52E: Juroe Company provided the following income statement for last year: Juroes balance sheet as of...

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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:

	Current Year (in millions)	Previous Year (in millions)
Cash and cash equivalents	$25,551		$9,216
Short-term investments, at cost	7,238		4,835
Accounts and notes receivable, net	7,097		7,405
Inventories	2,641		2,635
Prepaid expenses and other current assets	1,647		1,805
Short-term obligations	7,425		3,820
Accounts payable	15,345		12,674

This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below.

Open spreadsheet

Determine the (1) current ratio and (2) quick ratio for both years. Round your answers to one decimal place.

Current Year Previous Year

1. Current ratio fill in the blank 2 fill in the blank 3

2. Quick ratio fill in the blank 4 fill in the blank 5

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