1. Based on your horizontal analysis of Choice Hotels' and Marriott International's operating, investing, and financing activities, which company is most attractive for an acquisition by the equity firm and why?

2. What advice would you give to the client, Choice Hotels, to improve their investing and financing activities?

Choice Hotels 2017 2016 2017/2016) 2017 (2017/2016-1 Percent change from 2016 to 2017 2017 10K 2016 10-K 2017 10-K 2016 10-K change from Adjustments to reconcile to cash provided Adjustments to reconcile net income to net cash provided by operating activities Loss (gain) on disposal of assets Non-cash stock compensation and other charges procram -68800% Equity in net losses from unconsolidated joint ventures, less distributions received Changes in assets and liabillities, net of acquisition Net cash provided by operating activities Advances to from marketing and reservation system activities, net Acquisition of a business, net of cash acquired s Accrued expenses and other current liabilities Net cash provided by (used in) investing CASH FLOWS FROM INVESTING ACTIVITIES Proceeds from sales of assets Commercial paper/Credit Facility, net Repayment of long-term debt ssuance of Class A Common Stock Purchases of investments, employee benefit plans Proceeds from sales of investments, emplayee benefit plans ssuance of mezzanine and other notes receivable Net cash (used in) provided by financing DECREASE) INCREASE IN CASH AND CASH AND EQUIVALENTS, beginning ot CASH AND EQUIVALENTS, end of period Collections of mezzanine and other notes receivable Net cash used by investing activities CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from the issuance of long-term debt