Reference no: EM13586283

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