Cent year's , 1.0
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EX 17-7 Current position analysis
OBJ. 3
PepsiCo, Inc., 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
Prior Year
(in millions) (in millions)
Cash and cash equivalents
$ 8,721
$10,610
Short-term investments, at cost
272
8,900
Accounts and notes receivable, net
7,142
7,024
Inventories
3,128
2,947
Prepaid expenses and other current assets
2,630
1,546
Accounts payable
18,112
15,017
Other short-term liabilities
4,026
5,485
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?
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