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Gradebook / 235P-AC163-04 - Pr x " CengageNOWv2 | Online teachin x C PepsiCo, Inc. (PEP), the parent co x How to Create a Structured Rese: X + V X C A v2.cengagenow.com/ilrn/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogress=false Q E Week 6 Class Assignment (CH. 9) eBook Current Position Analysis ? . EX.09.07 2. EX.09.11 PepsiCo, Inc. (PEP), the parent company of Frito-Lay"M snack foods and Pepsi beverages, had the following current assets and current liabilities at the end of two recent years: Year 2 Year 1 in millions) (in millions) Cash and cash equivalents $ 10,610 $ 9,158 Short-term investments, at cost 8,900 5,967 Accounts and notes receivable, net 7,024 6,694 Inventories 2,947 2,723 Prepaid expenses and other current assets 1,546 908 Short-term obligations (liabilities) 5.485 6,892 Accounts payable and other current liabilities 15,017 14,243 a. Determine the (1) current ratio and (2) quick ratio for both years. Round to one decimal place. Year Year 1 Current ratio 1.5 Quick ratio X b. What conclusion can be drawn from these data? Pepsico's liquidity has improved during the period. Feedback Check My Work a. For current ratio, divide current assets by current liabilities. For quick ratio, divide quick assets by current liabilities. Quick assets are cash, temporary investments, and receivables. b. Consider the relationship of the accounts involved. Recall that these ratios are used to assess a company's ability to pay its current liabilities, which is called current position analysis. Increasing ratios signify Check My Work Next Progress: 1/2 items Assignment Score: 20%% All work saved. Email Instructor Save and Exit Submit Assignment for Grading 53-F Clear Q Search BLOG W ENG 10:51 PM US 5/18/2023

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