Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Kingwood International, Inc. and Just Like Our Home, Inc. are two major owners and managers of lodging and resort properties in the United States.

 

Balance sheet information is as follows (in millions):Kingwood Just LikeIntl Inc. OurHomeInc.$18,783 $3,8415,3573,908 

Kingwood International, Inc. and Just Like Our Home, Inc. are two major owners and managers of lodging and resort properties in the United States. Given Kingwood International, Inc and Just Like Our Home, Inc's data, answer the following questions: a Determine the following ratios for both companies. Round ratios and percentages to one decimal place. Show step-by-step process, including formulas. Type management's conclusion in complete sentence structure. (Example: Kingwood International, Inc. s return on total assets is X% and Just Like Our Home, Inc. s return on total assets is Y%) Retun on total assets 1. Retum on stockholders' equity Times interest eamed Ratio of total liabilities to stockholders' equity 2. 3. b. Based on the information in (1), analyze and compare the two companies' solvency and profitability. Write management conclusion with complete clarity and detail, using complete sentence structure, correct spelling and grammar. Part B- Data: Abstracted income statement information for the two companies is as follows for a recent year (in millions): Just Like Our Kingwood Intl Inc. Home Inc. Operating profit before other revenue and interest Other revenue (expense) Interest expense Income before income tax expense Income tax expense Net income $1.368 50 $299 66 (234) $1.184 (404) $780 (76) $289 (85) $204 Balance sheet information is as follows (in millions): Balance sheet information is as follows (in millions): Kingwood Just Like Intl Inc. Our Home Inc. $18,783 5,357 $24,140 Total liabilities $3,841 Total stockholders' equity Total liabilities and stockholders' equity 3,908 $7,749 The average liabilities, average stockholders' equity, and average total assets are as follows (in millions): Kingwood Just Like Intl Inc. Our Home Inc. $14,228 $3,719 Average total liabilities Average total stockholders' equity Average total assets 3,951 7,670 883 15,111

Step by Step Solution

3.45 Rating (155 Votes )

There are 3 Steps involved in it

Step: 1

A B D E F G K P R U V X Y Return on total assets EBITAverage Total Assets Return on Stacklholders Eq... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Intermediate Accounting

Authors: Donald E. Kieso, Jerry J. Weygandt, And Terry D. Warfield

13th Edition

9780470374948, 470423684, 470374942, 978-0470423684

More Books

Students also viewed these Accounting questions

Question

What are the main barriers to cross-listing abroad?

Answered: 1 week ago

Question

What is Larmors formula? Explain with a suitable example.

Answered: 1 week ago

Question

13. What is the relationship between orexin and narcolepsy?

Answered: 1 week ago

Question

10. Why do most antihistamines make people drowsy?

Answered: 1 week ago