To follow are the balance sheets for Metro Corporation and selected comparative competitor data.

Use the data to answer the following questions.

1. Calculate Metro’s quick (acid-test) ratio at December 31, 2018, and 2017.

2. Use the comparative information from the table given for Orleans Electric, Inc., O’Neil Company, and Lavallee Foods Corporation. Is Metro’s quick (acid-test) ratio for 2018 and 2017 strong, average, or weak in comparison?

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A1 Metro Corporation Balance Sheets (Adapted) December 31, 2018 and 2017 Increase (Decrease) Amount 3 (Dollar amounts in millions) 4 Assets 2018 2017 Percentage Current assets: Cash and cash equivalents Short-term investments $ 230 (34) (38) 32 $ 980 48 268 $ 1,210 14 230 23.5% (70.8) (14.2) 45.7 Receivables, net Inventories Prepaid expenses and other assets 8 102 70 10 (3.3) 10.8 8.1 292 1,848 3,660 1,020 826 302 1,668 3,386 848 730 (10) 180 Total current assets 11 Property, plant, and equipment, net 12 274 172 Intangible assets Other assets 13 14 15 16 Liabilities and Stockholders' Equity 20.3 13.2 10.9% 96 $ 722 Total assets $ 7,354 $ 6,632 Current liabilities: 17 Accounts payable $ 860 66 18 $ 966 42 128 $ 106 (24) 12 12.3% (36.4) 10.3 19 Income tax payable 20 Short-term debt Other 21 22 Total current liabilities 116 68 1,110 2,970 1,096 5,176 (2.9) 8.3 22.8 2.9 66 1,202 3,648 1,128 5,978 (2) 92 678 32 Long-term debt 23 Other liabilities 24 Total liabilities Stockholders' equity: Common stock Retained earnings 25 802 15.5 26 2 1,534 (160) 1,376 $ 7,354 27 2 1,640 (186) 1,456 $ 6,632 (106) 26 (80) $ 722 (6.5) 14.0 (5.5) 10.9% 28 Accumulated other comprehensive (loss) 29 Total stockholders' equity Total liabilities and stockholders' equity 30 31 32 Company Quick (acid-test) Ratio Orleans Electric, Inc. (Utility)... O'Neil Company (Department store). 0.74 . . 0.63 Lavallee Foods Corporation (Grocery store) .. 0.66 ..........