Question:
current position analysis: 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 (in millions) prior year (in millions)
cash and cash equivalents $5,943 $3,943
short-term investments, at cost 426 192
accounts and notes receivable, net 6,323 4624
inventories 3,372 2,618
prepaid expenses and other current assets 1,505 1,194
short-term obligations 4,898 8,292
accounts payable 10,994 464

determine the (1) current ratio and (2) quick ratio for both years.

current ratio and quick ratio:
the current ratio is calculated by taking current assets divided by current liabilities. the quick ratio is calculated by taking cash, short-term investments, and current receivables together then dividing them by current liabilities, both of these ratios measure liquidity and solvency.

1. 1.11 times , 1.44 times

2. 0.80 times , 1.00 times

Explanation:

The formulas and calculations are shown below:  

1. Current ratio = Total Current assets ÷ total current liabilities  

where,

For current year,

The current assets = Cash and cash equivalents + Short-term investments + Accounts and notes receivable + Inventories + Prepaid expenses and other current assets

= $5,943 + $426 + $6,323 + $3,372 + $1,505

= $17,569

And, current liabilities would be

= Short-term obligations + Accounts payable

= $4,898 + $10,994

= $15,892

Now put these values to the above formula  

So, the ratio would equal to

= $17,569 ÷ $15,892

= 1.11 times

For Prior year,

The current assets = Cash and cash equivalents + Short-term investments + Accounts and notes receivable + Inventories + Prepaid expenses and other current assets

= $3,943 + $192 + $4,624 + $2,618 + $1,194

= $12,571

And, current liabilities would be

= Short-term obligations + Accounts payable

= $8,292 + $464

= $8,726

Now put these values to the above formula  

So, the ratio would equal to

= $12,571 ÷ $8,726

= 1.44 times

2. Quick ratio = Quick assets ÷ total current liabilities  

where,  

Quick assets = Cash and cash equivalents + short-term investments + Accounts receivable (net)  

For current year it would be,

= $5,943 + $426 + $6,323

= $12,692

And, the current liabilities is $15,892

Now put these values to the above formula  

So, the value would equal to

= $12,692 ÷ $15,892

= 0.79 times

For prior year it would be,

=  $3,943 + $192 + $4,624

= $8,759

And, the current liabilities is $8,726

Now put these values to the above formula  

So, the value would equal to

= $8,759 ÷ $8,726

= 1 times

i'm pretty sure the answer is 60.