Question
The following balance sheet information (in $ millions) comes from the Annual Report to Shareholders of Hotel California for the 2013 fiscal year. (Certain amounts
The following balance sheet information (in $ millions) comes from the Annual Report to Shareholders of Hotel California for the 2013 fiscal year. (Certain amounts have been replaced with question marks to test your understanding of balance sheets.) In addition, youre provided with the following information from an analysis of Hotel Californias financial position at the same date:
Current ratio = 4.78
Acid-test ratio = 0.968
Debt-to-equity ratio = 1.35
Compute the missing amounts (rounded to the nearest $ in millions) in the Hotel California balance sheet. Please show all your work.
Assets Current a5sets Cash and equivalents $347 Accounts and notes receivable ? Inventory Other current non-liquid assets 1027 Total current assets Property and equipment, net $147 Other long term assets Total non-current asssets Total assets 2540 Liabilities and stockholder's equity Liabilities Current liabilities Accounts payable 114 Accrued labilities 259 Other payables and accruals ? Total current liabilities 472 ? Long term debt Deferred taxes liability 79 Other long term liabilities 198 Total long term liabilities Total liabilities ? Shareholders' equity Common stock 1000 Additional paid-in capital Retained earnings 137 172 Treasury stock and other -229 Total shareholders' equity 1080 Total liabilities and shareholders' equityStep by Step Solution
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