Selected financial data regarding current assets and current liabilities for Queen's Line, a competitor in the cruise line industry, is provided: ($ in millions) Current assets: Cash and cash equivalents $ 429 Current investments 94 Net receivables 224 Inventory 108 Other current assets 131 Total current assets $ 986 Current liabilities: Accounts payable $ 1,010 Short-term debt 674 Other current liabilities 939 Total current liabilities $ 2,623 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, $5,500,000 should be entered as 5.5.)
Selected financial data regarding current assets and current liabilities for Queen's Line, a competitor in the cruise line industry, is provided: ($ in millions) Current assets: Cash and cash equivalents $ 429 Current investments 94 Net receivables 224 Inventory 108 Other current assets 131 Total current assets $ 986 Current liabilities: Accounts payable $ 1,010 Short-term debt 674 Other current liabilities 939 Total current liabilities $ 2,623 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, $5,500,000 should be entered as 5.5.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Selected financial data regarding current assets and current liabilities for Queen's Line, a competitor in the cruise line industry, is provided:
| ($ in millions) | ||||
| Current assets: | ||||
| Cash and cash equivalents | $ | 429 | ||
| Current investments | 94 | |||
| Net receivables | 224 | |||
| Inventory | 108 | |||
| Other current assets | 131 | |||
| Total current assets | $ | 986 | ||
| Current liabilities: | ||||
| Accounts payable | $ | 1,010 | ||
| Short-term debt | 674 | |||
| Other current liabilities | 939 | |||
| Total current liabilities | $ | 2,623 | ||
Required:
1. Calculate the
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