Choice Hotels				Marriott International					(2016/2015)-1	(2016/2015)-1
10-K	CHH 2016 10-K Report	CHH 2015 10-K Report		10-K USD ($) $ in Millions	MAR 2016 10-K Report	MAR 2015 10-K Report			Choice percent change from 2015 to 2016	Marriott percent change from 2015 to 2016
Account Name	2016 10-K	2015 10-K		Account Name	2016 10-K	2015 10-K			Choice	Marriott
ASSETS				ASSETS
Current assets				Current assets
Cash and cash equivalents	$ 202,463.00	$ 193,441.00		Cash and equivalents	$ 858,000.00	$ 96,000.00
Receivables (net of allowance for doubtful accounts of $11,332 and $8,557, respectively)	$ 107,336.00	$ 89,352.00
Income taxes receivable	$ 316.00	$ 5,486.00		Prepaid expenses and other	168,000	$ 77.00
Notes receivable, net of allowance	$ 7,873.00	$ 5,107.00		Accounts and notes receivable, net	1,695.000	$ 1,103.000
Other current assets	$ 26,885.00	$ 17,567.00		Assets held for sale	588.000	$ 78.00
Total current assets				Assets, current, total				Total current assets	53%	654%
Property and equipment, at cost, net	$ 84,061.00	$ 88,158.00		Property and equipment, net	2,335,000	$ 1,029,000
Goodwill	$ 78,905.00	$ 79,327.00		Goodwill	7,598,000	$ 943,000
Intangible assets, net	$ 15,738.00	$ 11,948.00		Goodwill and intangible assets, net, total	7,598,000	$ 943,000
Notes receivable, net of allowances	$ 110,608.00	$ 82,572.00		Notes receivable, net	245,000	$ 215,000
Investments, employee benefit plans, at fair value	$ 16,975.00	$ 17,674.00		Equity and cost method investments	728,000	$ 165,000
Investments in unconsolidated entities	$ 94,839.00	$ 67,037.00		Intangible assets	7,598,000	$ 943,000
Deferred income taxes	$ 52,812.00	$ 42,434.00		Deferred tax assets	116,000	$ 672,000
Other assets	$ 53,657.00	$ 16,907.00		Other noncurrent assets	477,000	$ 223,000
Total assets	$ 852,468.00	$ 717,010.00		Total assets	24,140,000	$ 6,082,000		Total assets	19%	297%
LIABILITIES AND SHAREHOLDERS EQUITY				LIABILITIES AND SHAREHOLDERS EQUITY
Current liabilities				Current liabilities
Accounts payable	$ 48,071.00	$ 64,431.00		Current portion of long-term debt	$ 309,000	$ 300,000
Accrued expenses and other current liabilities	$ 80,888.00	$ 70,648.00		Accounts payable	$ 687,000	$ 593,000
Deferred revenue	$ 133,318.00	$ 71,587.00		Accrued payroll and benefits	$ 1,174,000	$ 861,000
Current portion of long-term debt	$ 1,195.00	$ 1,919.00		Liability for guest loyalty programs	$ 2,675,000	$ 1,622,000
Income taxes payable	$ 796.00	$ 159.00		Accrued expenses and other	$ 1,111.000	$ 527,000
Total current liabilities	$ 263,668.00	$ 208,016.00		Liabilities, current, total	$ 5,147,000	$ 3,233,000		Total current liabilities	27%	59%
Long-term debt	$ 838,409	$ 812,945.00		Long-term debt	$ 8,197,000	$ 3,807,000
Deferred compensation and retirement plan obligations	$ 21,595	$ 22,859.00		Liability for guest loyalty programs	$ 2,675,000	$ 1,622,000
Deferred income taxes	$ 292	$ 506.00		Deferred tax liabilities	$ 1,020,000	$ 16,000
Other liabilities	$ 38,853	$ 65,583.00		Other noncurrent liabilities	$ 1,744,000	$ 861,000
Total liabilities	$ 1,163,817.00	$ 1,112,909.00		Shareholders equity
Common stock, $0.01 par value, 160,000,000 shares authorized; 95,065,638 shares issued at September 30, 2017 and December 31, 2016 and 56,593,820 and 56,299,949 shares outstanding at September 30, 2017 and December 31, 2016, respectively	$ 951	$ 951.00		Class A Common Stock	$ 5,000,000	$ 5,000,000
Additional paid-in-capital	$ 159,045	$ 149,895.00		Additional paid-in-capital	$ 5,808,000	$ 2,821,000
Retained earnings	$ 607,560	$ 514,897.00		Retained earnings	$ 6,501,000	$ 4,878,000		Retained earnings	18%	33%
Treasury stock (38,471,818 and 38,765,689 shares at September 30, 2017 and December 31, 2016, respectively), at cost	1,070,,383	$ 1,052,864.00		Treasury stock, at cost	$ (6,957,000)	$ (11,294,000)
Accumulated other comprehensive loss	$ 8,522	$ 8,778.00		Accumulated other comprehensive loss	$ (497,000)	$ (196,000)
Total shareholders equity	$ 311,349	$ 395,899.00		Stockholders' equity (deficit) attributable to parent	$ 5,357,000.00	$ (3,590,000.00)
Total liabilities and shareholders equity	$ 852,468	$ 717,010.00		Liabilities and equity (deficit), total	24,140,00	$ 6,082,000		Total liabilities and equity	19%	-60%

1. Based on your horizontal analysis of Choice Hotels' and Marriott International's total assets, total liabilities, and total equity, 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 reduce its total liabilities?

3. Based only on the balance sheet, which company would you invest in and why?