Use the Allstott, Inc., balance sheet data on the following page.
1. Compute Allstott, Inc.€™s quick (acid-test) ratio at December 31, 2012 and 2011.
2. Use the comparative information from the table on the bottom of page 811 for Baker, Inc., Colvin Company, and Dunn Companies Limited. Is Allstott, Inc.€™s quick (acid-test) ratio for 2012 and 2011 strong, average, or weak in comparison?

Company Quick (acid-test) Ratio
Baker, Inc. (Utility)................................................. 0.71
Calvin Company (Department store)...................... 1.01
Dunn Companies Limited (Grocery store)..............1.05

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Allstott, Inc. Balance Sheets (Adapted) December 31, 2012 and 2011 Increase (Decrease) 2012 2011 Amount Percentage Dollar amounts in millions) Assets Current assets: Cash and cash equivalents Short-term investments Receivables, net Inventories Prepaid expenses and other assets $ 1,200 | $ 900 | $300 33.3% 70 (64 (91.4) 240 250(0) (4.0) 96 18.5 363 120 (33.1) 81 15 243 1,785 1,664 Total current assets Property, plant, and equipment, net Intangible assets Other assets 7.3 3,611 3,376 235 133 106 $7,235 S6,640 $ 595 15.1 14.7 1,011 828 722 Total assets 9.0 % Liabilities and Stockholders'Equity Current liabilities Accounts payable Income tax payable Short-term debt Other 1,000 900 100 11.1 % 61(22)36.1) 39 118 70 73 1,145 Total current liabilities 82 3,500 2,944 556 81 19 7.2 18.9 7.8 14.0 1,22 Long-term debt Other liabilities 1,117 1,036 5,844 5,12S Total liabilities Stockholders' equity: Common stock Retained earnings Accumulated other comprehensive (loss) 1,543 1,689 (146 (8.6) 12.6 (8.2) (154) 1,391 (176) 1,515 Total stockholders' equity Total liabilities and stockholders' equity (124) $7,235 ,640 595 9.0 %