Review the comparative consolidated balance sheets of LVMH Group as of the end of 2010, 2009, and 2008 as shown in the chapter on page 4-32. LVMH prepared these balance sheets using IFRS, and all amounts are expressed in millions of Euros.

Required:

Answer the following questions pertaining to LVMH Group's balance sheets.

1. What was the amount of the current assets and current liabilities at the end of 2010 and 2009?

2. What was the current ratio at the end of 2010 and 2009? Did LVMH's liquidity increase or decrease in 2010?

3. What was the single largest current asset and current liability?

4. How much has LVMH borrowed in shortterm and long term debt as of the end of 2010? Did these borrowings increase or decrease in 2010?

5. What is the total amount of liabilities as of the end of 2010 and 2009?

6. What was the total amount of equity as of the end of 2010 and 2009?

7. What was the debt-to-equity ratio as of the end of 2010 and 2009? How did LVMH's leverage change in 2010?

8. What was the inventory turnover rate in 2010? What was the average number of days for inventory turnover in 2010? Does the number of days for inventory turnover for LVMH seem long or short? If so, what aspect of LVMH's business strategy might explain the length of time it takes to turn over inventory?

9. Are LVMH's noncurrent assets at the end of 2010 primarily tangible, intangible or financial in nature?

10. What was the amount in investments in associates at the end of 2010?

11. What was the amount of minority interest in equity at the end of 2010?

12. Given your answers to questions 9 and 10, when LVMH has less than 100% ownership in another company, is it more likely that LVMH owns a minority of the equity (less than 50% of the outstanding shares) or a majority?