The current items, listed in alphabetical order, are taken from the consolidated balance sheets of Coca-Cola as of December 31, 2011, and PepsiCo as of December 25, 2011. (All amounts are in millions of dollars.)
| Coca-Cola |
|
| Accounts payable and accrued expenses |
$6,205 |
| Accrued income taxes |
252 |
| Cash and cash equivalents |
4,701 |
| Current maturities of long-term debt |
465 |
| Inventories |
2,187 |
| Loans and notes payable |
6,876 |
| Marketable securities |
278 |
| Prepaid expenses and other assets |
1,920 |
| Trade accounts receivable, less allowance of $51 |
3,090 |
| PepsiCo |
|
| Accounts and notes receivable, net |
$ 4,683 |
| Accounts payable and other current liabilities |
8,273 |
| Cash and cash equivalents |
2,064 |
| Income taxes payable |
145 |
| Inventories |
2,522 |
| Prepaid expenses and other current assets |
1,324 |
| Short-term investments |
4,683 |
| Short-term obligations |
369 |
Required:
1. Compute working capital and the current ratio for both companies. Enter working capital amounts in millions of dollars. Round current ratio to two decimal places. If required, use the minus sign to indicate negative working capital.
| Item |
Coca-Cola |
PepsiCo |
| Working capital |
$ |
|
$ |
|
| Current ratio |
|
:1 |
|
:1 |