a. (1) Current year’s current ratio. 1,3
Current position analysis Obi. 3
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 | $ 9,158 | $ 9,096 |
Short-term investments, at cost | 6,967 | 2,913 |
Accounts and notes receivable, net | 6,694 | 6,437 |
Inventories | 2,723 | 2,720 |
Prepaid expenses and other current assets | 1,547 | 1,865 |
Short-term obligations | 6,892 | 4,071 |
Accounts payable | 14,243 | 13,507 |
a. Determine the (1) current ratio and (2) quick ratio for both years. Round to one decimal place.
b. What conclusions can you draw from these data about PepsiCo’s liquidity?
Cornerstones of Financial Accounting
Financial & Managerial Accounting
Accounting Information Systems
Foundations of Business (MindTap Course List)
ECON: MICRO4 (New, Engaging Titles from 4LTR Press)
Brief Principles of Macroeconomics (MindTap Course List)
Fundamentals Of Financial Management, Concise Edition (mindtap Course List)
Principles of Macroeconomics (MindTap Course List)
Essentials of Business Communication (MindTap Course List)
Principles of Microeconomics (MindTap Course List)
Principles of Economics (MindTap Course List)
STATISTICS F/BUSINESS+ECONOMICS-TEXT
Fundamentals of Financial Management, Concise Edition (MindTap Course List)
Fundamentals of Financial Management (MindTap Course List)
Probability and Statistics for Engineering and the Sciences
Financial And Managerial Accounting
College Accounting, Chapters 1-27
Financial Accounting
Management, Loose-Leaf Version
Essentials of Economics (MindTap Course List)
Managerial Accounting: The Cornerstone of Business Decision-Making
Intermediate Accounting: Reporting And Analysis
Accounting Information Systems
MKTG 12:STUDENT ED.-TEXT
Contemporary Marketing
Financial Accounting
Financial & Managerial Accounting
College Accounting (Book Only): A Career Approach
College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)
College Accounting (Book Only): A Career Approach
Accounting (Text Only)
Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)
Pkg Acc Infor Systems MS VISIO CD
Statistics for Business & Economics, Revised (MindTap Course List)
Exploring Economics
Principles of Macroeconomics (MindTap Course List)
Fundamentals of Financial Management (MindTap Course List)
Survey of Accounting (Accounting I)
PAYROLL ACCT.,2019 ED.(LL)-TEXT
Corporate Financial Accounting
Microeconomics
Purchasing and Supply Chain Management
Practical Management Science
Economics For Today
Economics (MindTap Course List)
Macroeconomics
Cornerstones of Cost Management (Cornerstones Series)
Managerial Accounting
Macroeconomics: Private and Public Choice (MindTap Course List)
MACROECONOMICS FOR TODAY
Understanding Management (MindTap Course List)
Economics: Private and Public Choice (MindTap Course List)
Micro Economics For Today
Microeconomics: Private and Public Choice (MindTap Course List)