The Copper Grill has the following current assets: cash, $13 million; receivables, $60 million; inventory, $44 million; and other current assets $4 million. The Copper Grill has the following liabilities: accounts payable, $35 million; current portion of long-term debt, $6 million; and long-term debt, $13 million. Based on these amounts, calculate the current ratio and the acid-test ratio for The Copper Grill. (Round your answers to 2 decimal places.)

2

Panama Shirt Designs is a defendant in litigation involving an employee accident in its manufacturing plant. Record the appropriate journal entry for each of the following scenarios. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)

1.		The likelihood of a loss occurring is probable and the estimated loss is $700,000.
2.		The likelihood of a loss occurring is probable and the loss is estimated to be in the range of $450,000 to $800,000.
3.		The likelihood of a loss occurring is reasonably possible and the estimated loss is $700,000.
4.		The likelihood of a loss occurring is remote, while the estimated potential loss is $700,000.