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ACCT Question 5




Answer the following thoroughly. No;Marriott International, Inc., and Wyndham Worldwide Corporation are two major owners and managers of lodging and resort properties in the United States. Abstracted income statement information for the two companies is as follows for a recent year;x;Marriott;Wyndham;x;(in millions);(in millions);Operating profit before other expenses and interest;$695;$718;Other income (expenses);36;12;Interest expense;(180);(167);Income before income taxes;$551;$563;Income tax expense;93;184;Net income;$458;$379;Balance sheet information is as follows;x;Marriott;Wyndham;x;(in millions);(in millions);Total liabilities;$7,398;$6,499;Total stockholders? equity;1,585;2,917;Total liabilities and stockholders? equity;$8,983;$9,416;The average liabilities, stockholders? equity, and total assets were as follows;x;Marriott;Wyndham;x;(in millions);(in millions);Average total liabilities;$7,095;$6,582;Average total stockholders? equity;1,363;2,802;Average total assets;8,458;9,384;1. Determine the following ratios for both companies (round to one decimal place after the whole percent);a. Rate earned on total assets;b. Rate earned on total stockholders? equity;c. Number of times interest charges are earned;d. Ratio of liabilities to stockholders? equity;2. Analyze and compare the two companies, using the information in (1).


Paper#76597 | Written in 18-Jul-2015

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