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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
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:
|
 |
Dec. 31, 2005 |
Dec. 25, 2004 |
|
 |
(in millions) |
(in millions) |
|
Cash and cash equivalents |
$1,716 |
$1,280 |
|
Short-term investments, at cost |
3,166 |
2,165 |
|
Accounts and notes receivable, net |
3,261 |
2,999 |
|
Inventories |
1,693 |
1,541 |
|
Prepaid expenses and other current assets |
618 |
654 |
|
Short-term obligations |
2,889 |
1,054 |
|
Accounts payable and other current liabilities |
5,971 |
5,999 |
|
Income taxes payable |
546 |
99 |
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?
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