Use the Gagnon, Inc., balance sheet data on the following page.

Company Acid-Test Ratio
Horner, Inc. (Utility).............................................. 0.73
Isaacson Company (Department store)................... 0.68
Jona Companies Limited (Grocery store)............... 0.72

Requirements
1. Compute Gagnon, Inc.€™s acid-test ratio at December 31, 2010 and 2009.
2. Use the comparative information from the table on the bottom of page 811 for Horner, Inc., Isaacson Company, and Jona Companies Limited. Is Gagnon, Inc.€™s acid-test ratio for 2010 and 2009 strong, average, or weak incomparison?

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Gagnon, Inc. Balance Sheets (Adapted) December 31, 2010 and 2009 Increase (Decrease 2010 2009 Amount Percenta Dollar amounts in millions Assets Current Assets Cash and cash equivalents Short-term investments Receivables, net Inventories Prepaid expenses and other assets $1,203 $903 $300 33.2 % 7 84 (77) (91.7) 246 256(10) (3.9) 12.3 203343 140 40.8) 91 81 Total current a 1,750 1,667 83 3,619 3,396 223 Property, plant, and equipment, net 6.6 1,089 84 24829.5 14.8 Other assets 824 718 106 Total assets $7282 $6,622 s660 10.0 % Liabilities and Stockholders' Equity Current Liabilities Accounts payable $977 $884 $93 10.5 % 69 (30) (43.5) 5.2 70 73 (3) (4.1) 5.8 3,544 2,982 562 18.8 12.5 5,928 5,169 759 14.7 Short term debt. Other 121 115 Total current liabilities Long-term debt Other liabilities 1,207 1,141 1,177 1,046 131 Total liabiliti Stockholders' Equity Common stock Retained earnings Accumulated other comprehensive (loss) .. 1,513 1,629 (116 (7.1) 159)(176 17 9.7 1354 1453 99 (6.8) Total stockholders' equity Total liabilities and stockholders' equityS7.282 $6,622 660 10.0 %