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    Using Ratio Analysis to Complete a Balance Sheet

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    The following balance sheet information (in $ millions) comes from the Annual Report to Shareholders of Marriott International Inc. for the 2006 fiscal year.
    Certain amounts have been replaced with question marks to test your understanding of balance sheets. In addition, you are provided with the following
    information from an analysis of Marriott's financial position at the same date:
    Current ratio = 1.3140364; Acid-test ratio = 0.519429; Debt-to-equity ratio = 2.280367.
    Note: Quick assets consist of Cash and equivalents, and Accounts and notes receivables in this example.

    Compute the missing amounts (rounded to the nearest $ in millions) in the Marriott balance sheet.

    Current assets
    Cash and equivalents $193
    Accounts and notes receivable ?
    Inventory ?
    Other 796
    Total current assets ?
    Property and equipment, net 1,238
    Intangible assets, net ?
    Investments 402
    Notes and other receivables, net 738
    Other 1,400
    Total non-current assets ?
    Total assets ?

    Liabilities and Shareholders' Equity
    Current liabilities
    Accounts payable $658
    Accrued payroll and benefits 615
    Other payables and accruals 1,249
    Total current liabilities $2,522
    Long-term debt ?
    Other long-term liabilities 1,630
    Total long-term liabilities ?
    Total liabilities ?
    Shareholders' equity
    Class A common stock $ 5
    Additional paid-in capital 3,617
    Retained earnings 2,860
    Treasury stock and other (3,864)
    Total shareholders' equity $2,618
    Total liabilities and shareholders' equity $8,588

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    Solution Summary

    This solution illustrates how to use ratio analysis to complete a balance sheet.