The following current items, listed in alphabetical order, a

Assignment Help Finance The following current items, listed in alphabetical order, a

Finance

The following current items, listed in alphabetical order, a

The following current items, listed in alphabetical order, are taken from the consolidated balance… Show more The following current items, listed in alphabetical order, are taken from the consolidated balance sheets of Starwood Hotels & Resorts Worldwide, Inc. as of December 31, 2010, and Hyatt Hotels Corporations and Subsidiaries as of December 31, 2010. (All amounts are in millions of dollars.) Starwood Hotels & Resorts Worldwide, Inc. Accounts payable- 138 Accounts receivable, net allowance for doubtful accounts of $45- 513 Accrued expenses- 1,104 Accrued salaries, wages and benefits- 410 Accrued taxes and other- 373 Cash and cash equivalents- 753 Inventories- 802 Current maturities of long-term securitized vacation ownership debt- 127 Prepaid expenses and other- 126 Restricted cash- 53 Securitized vacation ownership notes receivable, net of allowance for doubtful accounts of $10- 59 Short-term borrowings and current maturities of long-term debt- 9 Hyatt Hotels Corporation and Subsidiaries Accounts payable- 145 Accrued compensation and benefits- 108 Accrued expenses and other current liabilities- 286 Assets held for sale- 18 Cash and cash equivalents- 1,110 Current maturities of long-term debt- 57 Deferred tax assets- 29 Inventories- 100 Prepaid and other assets- 73 Prepaid income taxes- 6 Receivables, net allowances of $15- 199 Restricted cash- 106 Short-term investments- 524 1. Compute working capital and the current ratio for both companies. 2. On the basis of your answers to (1) which company appears to be more liquid? 3. Other factors affect a company’s liquidity besides woking capital and current ratio. Comment on the composition of each company’s current assets and way this composition affects liquidity. • Show less

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