Marriott International, Inc. (MAR), and Hyatt Hotels Corporation (H) 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 (in millions):

Current Year		Previous Year
Accounts payable	$326,000		$278,000
Current maturities of serial bonds payable	420,000		420,000
Serial bonds payable, 10%	2,050,000		2,470,000
Common stock, $1 par value	90,000		120,000
Paid-in capital in excess of par	1,030,000		1,030,000
Retained earnings	3,540,000		2,810,000

The income before income tax expense was $790,400 and $691,600 for the current and previous years, respectively.

a. Determine the ratio of liabilities to stockholders' equity at the end of each year. Round to one decimal place.

Current year	fill in the blank 1
Previous year	fill in the blank 2

b. Determine the times interest earned ratio for both years. Round to one decimal place.

Current year	fill in the blank 3
Previous year	fill in the blank 4

Balance sheet information is as follows:

	Marriott	Hyatt
Total liabilities	$18,783	$ 3,841
Total stockholders equity	5,357	3,908
Total liabilities and stockholders equity	$24,140	$ 7,749

The average liabilities, average stockholders equity, and average total assets are as follows:

	Marriott	Hyatt
Average total liabilities	$14,228	$3,719
Average total stockholders equity	883	3,951
Average total assets	15,111	7,670

1. Calculate the following ratios for each year (Round ratios and percentages to one decimal place.)

			Marriott			Hyatt
a.	Return on total assets		fill in the blank 1	%		fill in the blank 2	%
b.	Return on stockholders equity		fill in the blank 3	%		fill in the blank 4	%
c.	Times interest earned		fill in the blank 5			fill in the blank 6
d.	Ratio of total liabilities to stockholders equity		fill in the blank 7			fill in the blank 8

2. Which of the following statements are correct?

Hasbro, Inc. (HAS), and Mattel, Inc. (MAT), are the two largest toy companies in North America. Condensed liabilities and stockholders equity from a recent balance sheet are shown for each company as follows (in thousands):

		Hasbro		Mattel
Liabilities:
Current liabilities		$1,617,859		$1,505,573
Long-term debt		1,588,067		2,580,439
Total liabilities		$3,205,926		$4,086,012
	Total stockholders equity	$1,862,736		$2,407,782
	Total liabilities and stockholders equity	$5,068,662		$6,493,794

The operating income and interest expense from the income statement for each company were as follows (in thousands):

	Hasbro		Mattel
Operating income (before income tax expense)	$692,489		$409,472
Interest expense	97,405		95,118

a. Determine the ratio of liabilities to stockholders' equity for both companies. Round to one decimal place.

Hasbro Inc.	fill in the blank 1
Mattel Inc.	fill in the blank 2

b. Determine the times interest earned ratio for both companies. Round to one decimal place.

Hasbro Inc.	fill in the blank 3
Mattel Inc.	fill in the blank 4