Presented below is 2006 information for PepsiCo, Inc. and The Coca Cola Company.

($ in millions)

PepsiCo

Coca Cola

Cash provided by operations

$ 6,084

$ 5,957

Average current liabilities

8,133

9,363

Average total liabilities

16,019

13,058

Net income

5,642

5,080

Sales

35,137

24,088

Capital expenditures

2,068

1,407

Dividends paid

1,854

2,911

Instructions

Using the cash based measures presented in this chapter, compare the (a) liquidity and (b) solvency of the two companies.0