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Need help with the (red x's). Thank you in advanced. Instructions Marriott International, Inc., and Hyatt Hotels Corporation are two major owners and managers of

Need help with the (red x's). Thank you in advanced.

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Instructions Marriott International, Inc., and Hyatt Hotels Corporation 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): Marriott Hyatt Operating profit before other expenses and interest $677.00 $39.00 Other income (expenses) 54.00 118.00 Interest expense (54.00) Income before income taxes $103.00 (180.00) $551.00 93.00 $458.00 Income tax expense 37.00 Net income $66.00 Balance sheet information is as follows: Marriott Hyatt 2 Total liabilities $2,125.00 Total stockholders equity $7,398.00 1,585.00 $8,983.00 5,118.00 $7,243.00 4 Total liabilities and stockholders' equity The average liabilities, average stockholders' equity, and average total assets are as follows: Marriott Hyatt Average total liabilities Average total stockholders' equity Average total assets $7.095 1.364 8.458 $2.132 5,067 7.199 1. Determine the following ratios for both companies: A. Return on total assets. B. Return on stockholders equity. C. Times interest eamed. D. Ratio of total abilities to stockholders' equity. Round ratios and percentages to one decimal place. 2. Based on the information in (1), analyze and compare the two companies' solvency and profitability Questions Shaded cells have feedback. 1. Determine the following ratios for both companies: Round ratios and percentages to one decimal place. Marriott Hyatt A. Return on Total Assets B. Return on stockholders' equity C. Times interest earned D. Ratio of liabilities to stockholders' equity 5.4 X % 33.6 % 4.1 4.7V 0.9 X % 1.3 % 2.9 Points: 6/8 2. Based on the information in (1), and analysis, which of the following statement is incorrect with regard to two companies' solvency and profitability Marriott's weak earnings and low debt levels are affecting the company's ability to earn returns for stockholders. Marriott has a higher return on total assets and a higher return on stockholders' equity compared to Hyatt Hyatt is not covering the interest expense on its debt as well as Marriott, which is negatively affecting the return on total assets Hyatt's weak earnings and low debt levels are affecting the company's ability to earn returns for stockholders. Points

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