2. Liquidity

Summary income statements and balance sheets are presented for three companies in the hotel and resort industry for fiscal year 2001 (in millions).

Income Statement

Hilton

Marriott

Mandalay*

Revenues

2,632

10,152

2,462

COGS

1,946

9,234

1,370

Gross Profit

686

918

1,092

SG&A Expenses

71

187

473

Net Income

166

236

53

*Fiscal year ends (FYE) Jan. 02

Balance Sheet

Hilton

Marriot

Mandalay

Cash & Market Securities

35

817

106

Receivables, net

631

611

77

Inventories

148

96

31

Total Current Assets

996

2,130

267

Fixed Assets, net

3,986

2,930

3,050

Total Assets

8,785

9,107

4,037

Total Current Liabilities

902

1,802

309

Total Liabilities

7,002

5,629

3,097

Total Equity

1,783

3,478

941

The following additional information is provided for fiscal year 2000 (in millions):

Hilton

Marriott

Mandalay*

Inventory

$137

$97

$31

Receivables, net

435

728

78

Working Capital

194

-502

-10

Fixed Assets, net

3,911

3,011

3,237

Total Assets

9,140

8,237

4,248

Total Equity

1,642

3,267

1,069

*FYE Jan. 02

Question 2.

Given the information presented on Sheet 1; (above info). calculate the liquidity ratios for the three hotel and resort companies. Show calculations following the table.
	Hilton	Marriott	Mandalay
Current
Quick