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: 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? Current Year(in millions)$ 9,1586,967Previous Year(in millions)$ 9,0962,913Cash and cash equivalentsShort-term investments, at costAccounts and notes receivable, net6,6942,7236,4372,720InventoriesPrepaid expenses and other current assetsShort-term obligationsAccounts payable1,5471,8656,89214,2434,07113,507

Name: PepsiCo, Inc. (PEP), the parent company of Frito-Lay snack foods and P
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Description: 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: a. Determine the (1) current ratio and (2) quick ratio for both years. Roun

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Business

Accounting

Current Year (in millions) $ 9,158 6,967 Previous Year (in millions) $ 9,096 2,913 Cash and cash equivalents Short-term investments, at cost Accounts and notes receivable, net 6,694 2,723 6,437 2,720 Inventories Prepaid expenses and other current assets Short-term obligations Accounts payable 1,547 1,865 6,892 14,243 4,071 13,507

Current Year (in millions) $ 9,158 6,967 Previous Year (in millions) $ 9,096 2,913 Cash and cash equivalents Short-term investments, at cost Accounts and notes receivable, net 6,694 2,723 6,437 2,720 Inventories Prepaid expenses and other current assets Short-term obligations Accounts payable 1,547 1,865 6,892 14,243 4,071 13,507

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter4: The Balance Sheet And The Statement Of Shareholders' Equity

Section: Chapter Questions

Problem 5RE

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