Selected financial data regarding current assets and current liabilities for Queen’s Line, a competitor in the cruise line industry, is provided below:
($ in millions)
Current assets
Cash and cash equivalents ......... $ 533
Current investments ........... -
Net receivables ............. 267
Inventory ............... 127
Other current assets ........... 145
Total current assets ........... $ 1,072
Current liabilities
Accounts payable ............ $ 962
Short-term debt ............ 1,199
Other current liabilities ......... 1,283
Total current liabilities ......... $ 3,444

Required:
1. Calculate working capital, 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?