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FINANCIAL ACCOUNTING

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Selected financial data regarding current assets and current liabilities for Queen's Line, a competitor in the cruise line industry,
provided:
($ in millions)
Current assets:
Cash and cash equivalents
Current investments
Net receivables
Inventory
Other current assets
499
86
275
100
127
Total current assets
$1,087
Current liabilities:
Accounts payable
$1,005
Short-term debt
654
Other current liabilities
959
Total current liabilities
$2,618
Required:
1. Calculate the current ratio and the acid-test ratio for Queen's Line. (Enter your answers in millions, not in dollars. For example,
$5,500,000 should be entered as 5.5.)
Current Ratio
%3D
Acid-Test Ratio
%24

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