Financial Statements for Midterm Exam

Hyatt Hotels Corp

Balance Sheet

Currency in

Millions of US Dollars

As of:

Dec 31

2010

Dec 31

2011

Assets

Cash and Equivalents

1,110.0

534.0

Short-Term Investments

546.0

610.0

TOTAL CASH AND SHORT TERM INVESTMENTS

1,656.0

1,144.0

Accounts Receivable

199.0

225.0

TOTAL RECEIVABLES

199.0

225.0

Inventory

100.0

87.0

Prepaid Expenses

51.0

56.0

Deferred Tax Assets, Current

29.0

23.0

Restricted Cash

106.0

27.0

Other Current Assets

24.0

29.0

TOTAL CURRENT ASSETS

2,165.0

1,591.0

Gross Property Plant and Equipment

5,437.0

6,083.0

Accumulated Depreciation

-1,984.0

-2,040.0

NET PROPERTY PLANT AND EQUIPMENT

3,453.0

4,043.0

Goodwill

102.0

102.0

Long-Term Investments

718.0

774.0

Loans Receivable, Long Term

375.0

360.0

Deferred Tax Assets, Long Term

62.0

197.0

Other Intangibles

280.0

359.0

Other Long-Term Assets

88.0

81.0

TOTAL ASSETS

7,243.0

7,507.0

LIABILITIES & EQUITY

Accounts Payable

145.0

144.0

Accrued Expenses

390.0

419.0

Current Portion of Long-Term Debt/Capital Lease

57.0

4.0

Other Current Liabilities, Total

4.0

1.0

TOTAL CURRENT LIABILITIES

596.0

568.0

Long-Term Debt

714.0

1,221.0

Minority Interest

13.0

10.0

Unearned Revenue, Non-Current

45.0

57.0

Pension & Other Post-Retirement Benefits

27.0

28.0

Deferred Tax Liability Non-Current

20.0

5.0

Other Non-Current Liabilities

710.0

800.0

TOTAL LIABILITIES

2,112.0

2,679.0

Common Stock

2.0

2.0

Additional Paid in Capital

3,751.0

3,380.0

Retained Earnings

1,404.0

1,517.0

Treasury Stock

-1.0

-1.0

Comprehensive Income and Other

-38.0

-80.0

TOTAL COMMON EQUITY

5,118.0

4,818.0

TOTAL EQUITY

5,131.0

4,828.0

TOTAL LIABILITIES AND EQUITY

7,243.0

7,507.0

Hyatt Hotels Corp

Income Statement

Currency in

Millions of US Dollars

As of:

Dec 31

2010

Dec 31

2011

Revenues

2,114.0

2,167.0

Other Revenues

45.0

66.0

TOTAL REVENUES

2,159.0

2,233.0

Cost of Goods Sold

1,540.0

1,498.0

GROSS PROFIT

619.0

735.0

Selling General &AdminExpenses, Total

276.0

283.0

Depreciation & Amortization, Total

279.0

305.0

Other Operating Expenses

0.0

0.0

OTHER OPERATING EXPENSES, TOTAL

555.0

588.0

OPERATING INCOME

64.0

147.0

Interest Expense

-54.0

-57.0

Interest and Investment Income

21.0

23.0

NET INTEREST EXPENSE

-33.0

-34.0

Income (Loss) on Equity Investments

-40.0

4.0

Currency Exchange Gains (Loss)

-3.0

-5.0

Other Non-Operating Income (Expenses)

-1.0

-11.0

EBT, EXCLUDING UNUSUAL ITEMS

-13.0

101.0

Merger & Restructuring Charges

--

-5.0

Gain (Loss) on Sale of Investments

40.0

-11.0

Gain (Loss) on Sale of Assets

26.0

-2.0

Other Unusual Items, Total

35.0

--

Other Unusual Items

35.0

--

EBT, INCLUDING UNUSUAL ITEMS

88.0

83.0

Income Tax Expense

37.0

-28.0

Minority Interest in Earnings

11.0

2.0

Earnings from Continuing Operations

51.0

111.0

EARNINGS FROM DISCOUNTINUED OPERATIONS

4.0

--

NET INCOME

66.0

113.0

NET INCOME TO COMMON INCLUDING EXTRA ITEMS

66.0

113.0

NET INCOME TO COMMON EXCLUDING EXTRA ITEMS

62.0

113.0

1.Using the Balance Sheet and Income Statement above,you are required to calculate (ROUND TO ONE DECIMAL PLACE)the following ratios for2010 and 2011: (40 points)

1. Calculate Current ratio. (4 points)
2. Based upon the current ratio, would creditors and owners be pleased with the performance of the hotel? Why? (8 points)
3. Calculate Acid test / Quick ratio. (4 points)
4. Calculate Debt to asset. (4 points)
5. Based on your Debt to asset ratio, would the owners be pleased with the performance of the business? Why? (4 points)
6. Calculate Inventory Turnover Ratio (assume inventory was $100,000 for 2008)? (4 points)
7. Calculate Return on Assets. (4 points)
8. Calculate Profit margin. (4 points)
9. Would the three parties; owners, creditors and managers be pleased with the profitability of the business? Why? (4 points)