The following current items, listed in alphabetical order, are taken from the consolidated balance sheets of Starwood Hotels & Resorts Worldwide, Inc. as of December 31, 2010, and Hyatt Hotels Corporation and Subsidiaries as of December 31, 2010. (All amounts are in millions of dollars.)
Starwood Hotels & Resorts Worldwide, Inc.

Hyatt Hotels Corporation and Subsidiaries

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. Other factors affect a company's liquidity besides working capital and current ratio. Comment on the composition of each company's current assets and ways this composition affects liquidity.

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Accounts payable Accounts receivable, net of allowance S 138 Current maturities of long-term Prepaid expenses and other Securitized vacation ownership notes securitized vacation ownership debt $127 126 53 for doubtful accounts of $45 Accrued expenses Accrued salaries, wages and benefits Accrued taxes and other Cash and cash equivalents Inventories 513 1,104 Restricted cash 410 373 753 802 receivable, net of allowance for doubtful accounts of $10 59 Short-term borrowings and current maturities of long-term debt Continued) Accounts payable $ 145 Deferred tax assets $ 29 100 73 (i 199 106 524 08 Inventories Accrued expenses and other current 286 18 Prepaids and other assets Prepaid income taxes Receivables, net of allowances of $15 liabilities Assets held for sale Cash and cash equivalents Current maturities of long-term debt 10 Restricted cash 57 Short-term investments