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) Cash and cash equivalents $ 9,096 $ 6,134 Short-term investments, at cost 2,913 2,592 Accounts and notes receivable, net 6,437 6,651 Inventories 2,720 3,143 Prepaid expenses and other current assets 1,865 2,143 Short-term obligations (liabilities) 4,071 5,076 Accounts payable and other current liabilities 13,507 13,016 a. Determine the (1) current ratio and (2) quick ratio for both years. Round to one decimal place. Year 2 Year 1 Current ratio ???? ???? Quick ratio ???? ????
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) Cash and cash equivalents $ 9,096 $ 6,134 Short-term investments, at cost 2,913 2,592 Accounts and notes receivable, net 6,437 6,651 Inventories 2,720 3,143 Prepaid expenses and other current assets 1,865 2,143 Short-term obligations (liabilities) 4,071 5,076 Accounts payable and other current liabilities 13,507 13,016 a. Determine the (1) current ratio and (2) quick ratio for both years. Round to one decimal place. Year 2 Year 1 Current ratio ???? ???? Quick ratio ???? ????
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 7E: PepsiCo, Inc. (PEP), the parent company of Frito-Lay snack foods and Pepsi beverages, had the...
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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) |
|||
Cash and cash equivalents | $ 9,096 | $ 6,134 | ||
Short-term investments, at cost | 2,913 | 2,592 | ||
Accounts and notes receivable, net | 6,437 | 6,651 | ||
Inventories | 2,720 | 3,143 | ||
Prepaid expenses and other current assets | 1,865 | 2,143 | ||
Short-term obligations (liabilities) | 4,071 | 5,076 | ||
Accounts payable and other current liabilities | 13,507 | 13,016 |
a. Determine the (1)
Year 2 | Year 1 | |
Current ratio | ???? | ???? |
Quick ratio | ???? | ???? |
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