1. Assume your parents want to give you a monetary gift for after you finish college and provide you with two options. You could either receive $40,000 today or $65,000 in five years. Which option would you choose if the interest rate is 6 percent? Why?
2. The balance sheet for Pepsi Co displays the following information: cash and marketable securities of $200,000, notes payable of $350,000, accounts payable of $800,000, accounts receivable of $550,000, inventory of $250,000, and accrued wages and taxes of $475,000.
Calculate the current ratio, quick ratio, and cash ratio for PepsiCo. What does this suggest about Pepsi-Co's liquidity position?