Question: 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
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 | $ | 499 |
| Current investments | 86 | |
| Net receivables | 275 | |
| Inventory | 100 | |
| Other current assets | 127 | |
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| Total current assets | $ | 1,087 |
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| Current liabilities: | ||
| Accounts payable | $ | 1,005 |
| Short-term debt | 654 | |
| Other current liabilities | 959 | |
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| Total current liabilities | $ | 2,618 |
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Required:
1. Calculate the current ratio and the acid-test ratio for Queen's Line.(Enter your answers in millions (i.e. 5,000,000 should be entered as 5).)
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