Question 3 (25 marks)

Requirement: Study the below balance sheet of Moving Pick Hotel Inc. and answer the following questions:

a) Define Retained Earnings

b) Define current assets

c) Define Treasury Stocks

d) Define Accumulated Depreciation

e) Define current Liabilities

2005 2004 2003 2002 (Dollars in thousands) Assets Current Assets: Cash and Cash Equivalents Receivables Inventory Prepaid Expenses Total Current Assets $272,640 12,090 738,630 54,880 1,078,240 $82,540 3,480 857,090 54,030 997,140 $321,390 7,550 668,200 39,670 1,036,810 $281,750 2,740 464,440 33,630 782,560 531,270 476,460 16,460 Property, Plant & Equipment (at cost): Land and Buildings Fixtures and equipment Leasehold improvements Construction in progress Less Accumulated Depreciation Property, Plant & Equipment, net Total Assets Liabilities and Stockholders' Equity Current Liabilities: Accounts Payable Advance Payment on Orders Income Taxes Payable Other Current Obligations Total Current Liabilities 383,350 411,230 15,120 46,370 (183,890) 672,180 $1,669,320 312,670 251,920 12,340 32,800 (135,020) 474,710 $1,511,520 151,140 219,740 9,080 6,740 (99,470) 287,230 $1,069,790 (248,430) 775,760 $1,854,000 $377,970 4,460 70,800 154,510 607,740 $244,150 2,030 53,020 139,950 439,150 $259,040 3,500 103,970 148,790 515,300 $212,223 4,530 53,940 117,900 388,600 Long-Term Debt 78,000 84,130 76,740 86,670 Stockholders' Equity: Common Stock; 20.1M, 20.1M &20.0M Shares, respectively, at par Additional Capital, net Retained Earnings Less Treasury Stock, at cost Total Stockholders' Equity Total Liabilities and Equity 2,000 293,080 624,400 2,000 223,080 341,666 2,010 311,360 983,810 (128,920) 1,168,260 $1.854.000 2,010 307,810 875,160 (38,940) 1,146,040 $1,669.320 919,480 $1.511.520 566,740 $1.069.790