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, 2008, and Marriott International, Inc. as of January 2, 2009. (All amounts are in millions of dollars.) Any assets or liabilities with which you may not be familiar are noted parenthetically.

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 affectsliquidity.

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Starwood Hotels & Resorts Marriott International, Inc. Accounts and notes receivable S 298 $17 Accounts payable Accounts payable Accounts receivable, net of Accrued payroll and benefits (liability Cash and cash equivalents Current deferred taxes, net (asset) Current portion of long-term debt 633 allowance for doubtful accounts of $49 Accrued expenses (liability) Accrued salaries, wages and benefits Accrued taxes and other Cash and cash equivalents 186 120 1,981 346 391 nventory Liability for guest loyalty program Other (asset) Other payables and accruals Timeshare segment deferred revenue 169 Prepaid expenses and other Restricted cash 96 lability) Short-term borrowings and current maturities of long-term debt