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