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 ........... $ 331
Current investments ............... 63
Net receivables ................ 230
Inventory ................... 116
Other current assets ............... 135
Total current assets ............... $ 875
Current liabilities:
Accounts payable ............... $1,025
Short-term debt .................. 694
Other current liabilities ............ 919
Total current liabilities ............ $2,638

Required:
1. Calculate the current ratio and the acid-test ratio for Queen’s Line.
2. Compare your calculations with those for United Airlines and American Airlines reported in the chapter text. Which company appears more likely to have difficulty paying its currently maturing debts?