Comparing Starwood Hotels & Resorts and Hilton Hotels The following current items, listed in alphabetical order, are
Question:
Comparing Starwood Hotels & Resorts and Hilton Hotels The following current items, listed in alphabetical order, are taken from the consolidated balance sheets of Starwood Hotels & Resorts and Hilton Hotels as of December 31, 2006. (All amounts are in millions of dollars.) Any assets or liabilities with which you may not be familiar are noted parenthetically.
Required 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. As you know, other factors affect a company’s liquidity in addition to its working capital and current ratio. Comment on the composition of each company’s current assets and ways this composition affects the company’s liquidity.
Step by Step Answer:
Financial Accounting The Impact On Decision Makers
ISBN: 9780324655230
6th Edition
Authors: Gary A. Porter, Curtis L. Norton