As chief lending officer for a bank, you need to decide whether to make a loan to Starwood Hotels & Resorts Worldwide, Inc. The current items, listed in alphabetical order, are taken from the consolidated balance sheets of Starwood Hotels & Resorts Worldwide, Inc., and its competitor Hyatt Hotels Corporation and Subsidiaries at the end of 2014 and

2013 (included in the companies' Form 10-Ks for the years ended December 31, 2014; all amounts are in millions of dollars):

Required
Part A. The Ratio Analysis Model
A banker must be able to assess a company's liquidity before loaning it money. Liquidity is the ability of a company to pay its debts as they come due. Replicate the five steps in the Ratio Analysis Model on pages 73-74 to analyze the current ratios for Starwood Hotels & Resorts Worldwide. Inc., and Hyatt Hotels Corporation and Subsidiaries:
1. Formulate the Question
2. Gather the Information from the Financial Statements
3. Calculate the Ratio
4. Compare the Ratio with Other Ratios
5. Interpret the Ratios
Part B. The Business Decision Model
A banker must consider a variety of factors, including financial ratios, before making a loan. Replicate the five steps in the Business Decision Model on page 74 to decide whether to make a loan to Starwood Hotels & Resorts Worldwide, Inc.:
1. Formulate the Question
2. Gather Information from the Financial Statements and Other Sources
3. Analyze the Information Gathered
4. Make the Decision
5. Monitor Your Decision

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Starwood Hotels & Resorts Worldwide, Inc. 12/31/14 12/31/13 Accounts payable Accounts receivable, net of allowance for doubtful accounts S 101 105 of $63 and $59 Accrued expenses Accrued salaries, wages and benefits Accrued taxes and other Cash and cash equivalents Current maturities of long-term securitized vacation 661 1,307 416 256 935 643 1,092 404 224 616 ownership debt Deferred income taxes Inventories Prepaid expenses and other Restricted cash Securitized vacation ownership notes receivable, net $ 73 199 236 159 84 $ 97 211 217 121 134 of allowance for doubtful accounts of $4 and $6 Short-term borrowings and current maturities of long-term debt This item is reported as an asset. Hyatt Hotels Corporation and Subsidiaries Accounts payable Accrued compensation and benefits Accrued expenses and other current liabilities Assets held for sale Cash and cash equivalents Current maturities of long-term debt Deferred tax assets Inventories Prepaids and other assets Liabilities held for sale Prepaid income taxes Receivables, net of allowances of $13 and $11 at 47 54 297 12/31/14 $130 120 468 63 685 12/31/13 $133 133 411 454 194 26 17 108 122 47 12 December 31, 2014 and 2013, respectively Restricted cash Short-term investments 274 359 130 273 184 30