Question

Answer this fully please, type your answer, someone already answered it here but it was wrong, only answer (((Quick ratio: ))))))and its not 1.2, 1.2 if you get any of these numbers dont reply to my question please

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.

	Current Year	Previous Year
1. Current ratio
2. Quick ratio

Answer 1

Correct Answer:

	Current year	Previous year
Quick ratio	1.15	1.16
current ratio	1.28	1.31

Working:

		Current year	Previous year
A	Cash and Cash equivalents	$                9,158	$          9,096
B	Short-term investments	$                6,967	$          2,913
C	Accounts and notes receivables, net	$                6,694	$          6,437
D	Prepaid expenses and other current assets	$                1,547	$          1,865
E =A+B+C+D	Quick Assets	$              24,366	$       20,311
F	Inventories	$                2,723	$          2,720
G =E+F	Total current assets	$              27,089	$       23,031
H	Short term obligations	$                6,892	$          4,071
I	Accounts payable	$              14,243	$       13,507
J =H+I	Total current liabilities	$              21,135	$       17,578
K =E/J	Quick ratio	1.15	1.16
L =G/J	current ratio	1.28	1.31

End of answer.

Thanks.