Marriott International Inc. (NASDAQ: MAR; Bethesda, MD; hereafter, ?Marriott? or ?the Company?) isa worldwide operator, franchisor, and licensor of hotels and timeshare properties under numerous brandnames at different price and service points, including the Ritz-Carlton, BVLGARI, and Courtyard byMarriott. The Company became a public company in 1998 when it was ?spun off? as a separate entity bythe company formerly named ?Marriott International, Inc.?Use the attached financial statements and selected notes to the financial statements from Marriott?s 10-Kfor the year ended December 31, 2014 to answer the following questions. (You will not need tosupplement with outside sources of company data in order to answer the questions.)1. Write out the fundamental accounting equation, and identify the values for the fundamentalaccounting equation for the Company?s 2014 year end.(You?ll notice something unusual about how this equation has balanced. This question previews oneof our topics for next week! For the rest of this assignment, we?ll focus on liabilities?)2. Compute and evaluate the Company?s current ratio as at December 31, 2014 and 2013. Based onthese computations, has liquidity increased or decreased during the current year?3. (a) Is the Company?s ?Liability for guest loyalty programs? a deferred revenue or an accrued liability?Explain.(b) What percentage of the Company?s total liability for guest loyalty programs is expected to beresolved in the coming fiscal year (that is, in 2015)?Page 2 of 64. (a) The attached ?Commitments and Contingencies? footnote indicates that the Company has a?commitment, with no expiration date, to invest up to $11 million in a joint venture for developmentof a new property? and that it expects ?to fund this commitment in 2015.? Yet, the footnote alsoindicates that no liability has yet been recorded on the Balance Sheet. Why not?(b) The attached ?Commitments and Contingencies? footnote also indicates that the Company has beennamed as a defendant in a lawsuit filed by several former Marriott employees. Yet, no liability hasbeen recorded on the Balance Sheet. Under what circumstances would this be inappropriate?5. The Company?s Long-Term Debt footnote (not attached) includes the following information:In the 2013 third quarter, we issued $350 million aggregate principal amount of 3.4 percent SeriesM Notes due 2020 (the ?Series M Notes?). We received net proceeds of approximately $345 millionfrom the offering, after deducting the underwriting discount and estimated expenses. We pay intereston the Series M Notes on April 15 and October 15 of each year, commencing on April 15, 2014.These Series M Notes are described as:Series M Notes, interest rate of 3.4%, face amount of $350, maturing October 15, 2020(effective interest rate of 3.6%)(a) What journal entry would have been recorded in the third quarter of 2013 to record the issuanceof the Series M Notes?(b) Record the interest payment and interest expense on April 15 and October 15, 2014. Assume theeffective interest method, and record your responses to the nearest thousand dollars.April 15:October 15:(c) Assume that, at the end of 2014, the prevailing market rate for interest obligations similar to thesenotes was 4.0%. What would be the approximate net carrying or book value of the notes at theyear end? Explain.Page 3 of 6EXCERPTS FROM MARRIOTT INTERNATIONAL, INC.?S 10-K FOR THE YEAR ENDED DECEMBER 31, 2014MARRIOTT INTERNATIONAL, INC.CONSOLIDATED STATEMENTS OF INCOMEFiscal Years 2014 , 2013 , and 2012($ in millions, except per share amounts)December 31,2014December 31,2013December 28,2012REVENUESBase management fees $ 672 $ 621 $ 581Franchise fees 745 666 607Incentive management fees 302 256 232Owned, leased, and other revenue 1,022 950 989Cost reimbursements 11,055 10,291 9,40513,796 12,784 11,814OPERATING COSTS AND EXPENSESOwned, leased, and other-direct 775 729 785Reimbursed costs 11,055 10,291 9,405Depreciation, amortization, and other 148 127 102General, administrative, and other 659 649 58212,637 11,796 10,874OPERATING INCOME 1,159 988 940Gains and other income 8 11 42Interest expense (115) (120) (137)Interest income 30 23 17Equity in earnings (losses) 6 (5) (13)INCOME BEFORE INCOME TAXES 1,088 897 849Provision for income taxes (335) (271) (278)NET INCOME $ 753 $ 626 $ 571EARNINGS PER SHARE-BasicEarnings per share $ 2.60 $ 2.05 $ 1.77EARNINGS PER SHARE-DilutedEarnings per share $ 2.54 $ 2.00 $ 1.72See Notes to Consolidated Financial Statements.Page 4 of 6MARRIOTT INTERNATIONAL, INC.CONSOLIDATED BALANCE SHEETSFiscal Years-Ended 2014 and 2013($ in millions)December 31,2014December 31,2013ASSETSCurrent assetsCash and equivalents $

ACCT 607 Applied Case Assignment #7 (Chapters 10 and 11) Name_____________________ Answer the following questions (Part I and Part II) based on the provided excerpts from a selection of greater Washington area public companies' recent 10-Ks. (You will not need to supplement with outside sources of company data in order to answer the questions.) Part I: Booz Allen Hamilton Holding Corporation (NYSE: BAH; McLean, VA) Founded in 1914, Booz Allen Hamilton describes itself as \"a leading provider of management consulting, technology, and engineering services to the U.S. government in the defense, intelligence, and civil markets.\" Booz Allen Hamilton Holding serves as the top-level holding company for the consolidated Booz Allen Hamilton U.S. government consulting business. Answer the following questions based on the Company's Consolidated Balance Sheets for March 31, 2015 and 2014 (hereafter, FY15 and FY14), which are excerpted and presented on the next page: 1. During FY15, the decreases in Class B, Class C, and Class E shares are because those shares were converted to Class A shares. Assume that the remaining increase in Class A share is due to new share issuances for cash. What journal entry would the Company have recorded for the issuance of those new shares? 2. There were no sales of Treasury Stock during FY15. What was the average share price at which the Company repurchased additional Treasury Stock shares during FY15? 3. There were no usual transactions affecting the Company's Retained Earnings during FY15. If Net Income for FY2015 was $232,569 thousand, what was the value of dividends declared during the year? Page 1 of 4 EXCERPT FROM BOOZ ALLEN HAMILTON HOLDING CORPORATION'S 2015 10K Page 2 of 4 ACCT 607 Applied Case Assignment #7 (Chapter 10, 11) Continued Part II: Under Armour, Inc. (NYSE: UA; Baltimore, MD) 4. Incorporated in Maryland in 1996, Under Armour, Inc. describes itself as \"developing, marketing and distributing branded performance apparel, footwear and accessories for men, women and youth.\" On June 15, 2015, Under Armour announced the creation of a new class of non-voting common stock, the Class C common stock. The press release stated that: Under Armour expects to issue Class C stock through a stock dividend to all existing holders of Under Armour's Class A and Class B common stock, which will have the same effect as a two-for-one stock split. Each holder of a share of Class A or Class B stock will receive one share of the new Class C stock. Do you agree or disagree that the effect of the Class C stock dividend will be the same as a two-forone stock split? As an example, assume the transaction would have occurred on January 1, 2015. On the basis of the information on Under Armour's Consolidated Balance Sheet for December 31, 2014 (excerpted and presented on the next page of this assignment), what journal entry would be required to record (a) a two-for-one stock split, and (b) the Class C stock dividend? (a) Two-for-one stock split: (b) Class C stock dividend: Do you agree or disagree that the effect of the Class C stock dividend will be the same as a two-forone stock split? Page 3 of 4 EXCERPT FROM UNDER ARMOUR, INC.'S 2015 10K Page 4 of 4 ACCT 607 BONUS Applied Case Assignment (Chapters 10 and 11) Name_____________________ This applied case is OPTIONAL. You do NOT need to complete this assignment. However, if you choose to complete this assignment and submit it along with Applied Case Assignment #7 by the appropriate due date, it will be graded as a BONUS case assignment. Your grade on the BONUS case assignment will replace one of your earlier case assignment grades, if it improves your overall score. Lockheed Martin Corporation (NYSE: LMT; Bethesda, MD) describes itself as \"a global security and aerospace company principally engaged in the research, design, development, manufacture, integration and sustainment of advanced technology systems, products and services,\" with its principal customers being agencies of the U.S. Government. On the next two pages are Lockheed Martin's Consolidated Statements of Earnings, Comprehensive Income, and Balance Sheets, along with the Long-Term Debt footnote, excerpted from the its 2014 10-K. (You will not need to supplement with outside sources of company data in order to answer the questions.) 1. What is the principal or face value of Lockheed Martin's long-term debt? 2. (a) To what covenant(s) is Lockheed Martin subject under the terms of their revolving credit facility? (b) How is the covenant ratio described differently from what we might compute as part of the ROE decomposition? Page 1 of 4 ACCT 607 BONUS Applied Case Assignment (Chapters 10 and 11) 3. The footnote states that \"In April 2013, [Lockheed Martin] repaid $150 million of long-term notes with a fixed interest rate of 7.38% due to their scheduled maturities.\" At the time of repayment, did the net carrying value of these long-term notes reflect at a premium, a discount, or par value? Explain. 4. Has Lockheed Martin's solvency improved or deteriorated in 2014 relative to 2013? Explain your response, and identify the primary cause for that change. Page 2 of 4 EXCERPTS FROM LOCKHEED MARTIN CORPORATION'S 2014 10K Page 3 of 4 Page 4 of 4