Hilton's 2001 segment reporting note showed that Hotel Ownership has revenue of $1,886 million, operating income of $474 million, and assets of $4,925 million. Managing and Franchising had revenues of $120 million, operating income of $113 million, and assets of $680 million. This indicates that:

	a.	Hotel Ownership has a higher operating return on sales than Managing & Franchising
	b.	Managing & Franchising probably should be sold since the return operating return on sales is extremely low
	c.	Hotel Ownership had an operating return on sales ratio below 2%, a possible red flag
	d.	Managing & Franchising s asset turnover ratio at 17.6% suggests inefficiency when compared to Hotel Ownership

1 points

QUESTION 15

Marriott uses the all-current method for foreign currency translation. The translation adjustment for 2001 was -$14 million (a net loss), and net income was $236 million. The translation adjustment was:

	a.	Reported as a loss under income from continuing operations
	b.	Reported as an extraordinary loss on the income statement
	c.	Reported directing to current liabilities at $14 million
	d.	Reported as a negative equity item as an other comprehensive income item

1 points

QUESTION 16

General Electric (GE) had a Prepaid Pension Asset of $12.4 billion, total assets of $495 billion, and net income of $13.7 billion, all for 2001. This means that:

	a.	GE's pension plan was underfunded by $12.4 billion
	b.	GE recorded a nonrecurring item on the income statement for $12.4 billion
	c.	GE had other comprehensive income of $12.4 billion
	d.	GE's pension plan was overfunded by $12.4 billion