please help with filling in the blanks. I am attaching charts below this to help. please convert all of the dollar amounts to currency. thanks for the help.

please help with the charts. I will add other tables to assist. please convert all dollar amounts to currency. please calculate using excel. thanks for your help.

Instructions 1. Please enter the data from the previous tabs by clicking on the cell and typing = and then clicking on the desired cell. For example to enter Net Income for 2018 type and go to the income statement tab and click on cell 127. 2. Complete the calculations. 3. Explain the significance of your ratio calculations. Be careful, only Balance sheet numbers are in thousands. Income Statement and Cash Flow Statement numbers are as presented. Brigham, E; Ehrhardt, M. (2017). Chapter 3. Financial Management, Theory and Practice. Boston, MA: Cengage Learning Suggested level for a good result Solvency Ratios 1 Ability to Pay Interest: Times Interest Earned Ratio a. Calculate Earnings before Interest and Taxes (EBIT) 2018 2017 Add: mmodo PETERSRSR Operating income Depreciation and amortization EBIT Interest equals b. Calculate Times Interest Earned Ratio EBIT / Interest Above 4.5 Leverage Ratios 2 Market Debt Ratio a. Find Market Value of Equity from "Market Cap" in Yahoo Finance 2018 b. Calculate Total Debt + Market value of Equity Add: Total Debt Market Value of Equity Total: Total Debt + Market Value of Equity Instructions 10-K Document Questions Income Statement Balance Sheet Statement of Cash Flow Ratio Analysis O Type here to search D e L . @ e 12 Months Ended Horizontal Analysis Consolidated Balance Sheets - USD ($) $ in Thousands Dec 31, 2018 Dec 31, 2017 S Change 2017 to 2018 % Change 2017 to 2018 $235,336 $208,694.00 88.68% $125,870 $0 Current assets Cash and cash equivalents $26,642 Receivables (net of allowance for doubtful accounts of $15,905 and $12,221, respectively) $138,018 Income taxes receivable $10,122 Notes receivable, net of allowances $36,759 Other current assets $32,243 Total current assets $243,784 Property and equipment, at cost, net $127,535 Goodwill $168,996 Intangible assets, net $271,113 Notes receivable, net of allowances $83,440 Investments, employee benefit plans, at fair value $19,398 Investments in unconsolidated entities $109,016 Deferred income taxes $30,613 Other assets $84,400 Total assets $1,138,370 Current liabilities Accounts payable $73,511 Accrued expenses and other current liabilities $92,651 Deferred Revenue $67,614 Liability for guest loyalty program $83,566 Current portion of long-term debt $1,097 Total current liabilities $318,439 Long-term debt $753,514 Instructions 10-K Document Questions Balance Sheet Income Statement $13,256 $25,967 $400,429 $83,374 $80,757 $100,492 $80,136 $20,838 $134,226 $27,224 $67,715 $995,191 $12,148.00 $10,122.00 $23,503.00 $6,276.00 -$156,645.00 $44,161.00 $88,239.00 $170,696.00 $3,304.00 $1,440.00 -$25,210.00 $3,389.00 $16,685.00 $143,179.00 9.65% 0.00% 177.30% 24.17% -39.12% 52.97% 109.26% 169.86% 4.12% -6.91% - 18.78% 12.45% 24.64% 14.39% $67,839 $84,315 $52,142 $79,123 $1,232 $284,651 $725,292 Statement of Cash Flows $5,672.00 $8,336.00 $15,472.00 $4,443.00 -$135.00 $33,788.00 $28,222.00 Ratio Analysis 8.36% 9.89% 29.67% 5.62% -10.96% 11.87% 3.89% Formatting Styles Table Styles Clipboard Font Alignment Number $110,278 $24,212 $26,276 $0 $98,459 $25,566 $29,041 $39 $48,701 $42,043 $1,253,792 $11,819.00 -$1,354.00 -$2,765.00 -$39.00 $3,626.00 -$4,947.00 $68,350.00 12.00% -5.30% -9.52% -100.00% 7.45% -1177.00% 5.45% $52,327 $37,096 $1,322,142 Long-term portion Deferred compensation and retirement plan obligations Income taxes payable Deferred income taxes Liability for guest loyalty program Other liabilities Total liabilities Commitments and Contingencies Common stock, $0.01 par value; 160,000,000 shares authorized; 95,065,638 shares issued at December 31, 2018 and December 31, 2017; 55,679,207 and 56,679,968 shares outstanding at December 31, 2018 and December 31, 2017, respectively Additional paid-in-capital Accumulated other comprehensive loss Treasury stock, at cost; 39,386,431 and 38,385,670 shares at December 31, 2018 and December 31, 2017, respectively Retained earnings Total shareholders' deficit Total liabilities and shareholders' deficit 0.00 $951 $213,170 -$5,446 $951 $182,448 -$4,699 $0.00 $30,722.00 -$747.00 16.84% 15.90% -$1,187,625 $795,178 -$183,772 $1,138,370 -$1,064,573 $627,272 -$258,601 $995,191 $123,052.00 $167,906.00 $74,829.00 $143,179.00 11.56% 26.77% -28.94% 14.39% Questions: 1. Choice Hotels works with franchisees who operate hotels under one of the Choice Hotels brands such as Cambria Hotels, Sleep Inn, and Econo Lodge. The Bala Consolidated Statements of Cash Flows Dec. 31, 2018 Dec. 31, 2017 Dec. 31, 2016 CASH FLOWS FROM OPERATING ACTIVITIES Net income $216,355,000 $122,327,000 $106,712,000 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization $14,330,000 $6,680,000 $6,996,000 Depreciation and amortization - marketing and reservation system $19,597,000 $20,609,000 $20,663,000 Franchise agreement acquisition cost amortization $9,239,000 $7,191,000 $6,423,000 Impairment of goodwill $4,289,000 $0 S . $0 Gain on disposal of assets, net $56,000 -$237,000 $571,000 Provision for bad debts, net $10,542,000 $5,514,000 $3,365,900 Non-cash stock compensation and other charges $15,986,000 $22,857,000 $15,346,000 Non-cash interest and other investment (income) loss $3,695,000 -$772,000 $1,059,000 Deferred income taxes $3,510,000 $57,106,000 $29,723,000 Equity in net losses from unconsolidated joint ventures, less distributions received $7,389,000 $6,579,000 $1,025,000 Franchise agreement acquisition cost, net of reimbursements -$52,929,000 -$30,638,000 $17,410,000 Change in working capital and other, net of acquisition -$2,031,000 $40,158,000 $38,150,000 Net cash provided by operating activities $242,896,000 $257,374,000 $152,035,000 CASH FLOWS FROM INVESTING ACTIVITIES Investment in property and equipment -$47,673,000 $23,437,000 -$25,191,000 Investment in intangible assets $1,803,000 -$2,517,000 -$2,580,000 Proceeds from sales of assets $3,053,000 $1,000,000 $11,462,000 Asset acquisition, net of cash acquired $3,179,000 -$28,583,000 Business acquisition, net of cash acquired $231,317,000 $o -$1,341,000 Contributions to equity method investments -$9,604,000 $50,554,000 -$34,661,000 Distributions from equity method investments $1,429,000 $4,569,000 $3,700,000 Purchases of investments, employee benefit plans -$2,895,000 -$2,447,000 -$1,661,000 Instructions 10-K Document Questions Balance Sheet Income Statement Statement of Cash Flows Ratio Analysis non ENSIN ) JIT TUN HUILJUDULL ILIISU U UNUI Lash paid during the year for G H $2,825,000 $36,045,000 $4,997,000 -$1,040,000 $321,252,000 $2,245,000 $19,738,000 $655,000 $109,000 -$90,115,000 $1,911,000 -$32,604,000 $11,070,000 $11,000 - $98,467,000 $9,037,000 $0 $0 $115,003,000 -$660,000 $25,795,000 -$988,000 $550,000 -$284,200 $35,926,000 $46,182,000 SO Proceeds from sales of investments, employee benefit plans Issuance of notes receivable Collections of notes receivable Other items, net Net cash used in investing activities CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from issuance of long term debt Net (repayments) borrowings pursuant to revolving credit facilities Principal payments on long-term debt Proceeds from other debt agreements Debt issuance costs Purchases of treasury stock Dividends paid Proceeds from transfer of interest in notes receivable Proceeds from exercise of stock options Net cash used in financing activities Net change in cash and cash equivalents Effect of foreign exchange rate changes on cash and cash equivalents Cash and cash equivalents at beginning of period Cash and cash equivalents at end of period Cash payments during the year for: Income taxes, net of refunds Interest, net of capitalized interest Non-cash investing and financing activities: Dividends declared but not paid Investment in property, equipment and intangibles acquired in accounts payable and accrued liabilities Instructions 10- Document Questions Balance sheet $20,600,000 $603,000 $0 | $2,590,000 -$148,679,000 -$48,715,000 $173,000 $41,360,000 $129,417,000 $207,773,000 So $9,807,000 -$48,651,000 $24,237,000 $14,107,000 $135,777,000 $31,482,000 $12,951,000 $44,084,000 $9,484,000 -$921,000 $235,336,000 $26,642,000 $1,391,000 S202,463,000 $235,336,000 $462,000 $193,441,000 $202,463,000 $77,357,000 $43,254,000 $39,181,000 $42,405,000 $65,683,000 $41,992,000 $11.977,000 $12,185,000 $12,112,000 $5,949,000 income Statement 51,099,000 $3,648,000 Statement of Cash Flows Ratio Analysis DE 1. Please enter the data from the previous tabs by clicking on the cell and typing and then clicking on the desired cell. For example to enter Net Income for 2018 type = and go to the income statement tab and click on cell 127. 2. Complete the calculations. 3. Explain the significance of your ratio calculations. Be careful, only Balance sheet numbers are in thousands. Income Statement and Cash Flow Statement numbers are as presented. Brigham, E; Ehrhardt, M. (2017). Chapter 3. Financial Management, Theory and Practice. Boston, MA: Cengage Learning Suggested level for a good result Solvency Ratios 1 Ability to Pay Interest: Times Interest Earned Ratio a. Calculate Earnings before interest and Taxes (EBIT) 2018 Add: Operating income Depreciation and amortization EBIT equals Interest b. Calculate Times Interest Earned Ratio EBIT / Interest Above 4.5 Leverage Ratios 2 Market Debt Ratio a. Find Market Value of Equity from "Market Cap" in Yahoo Finance 2018 796,223 b. Calculate Total Debt + Market Value of Equity Add: Total Debt Market Value of Equity Total: Total Debt + Market Value of Equity 8 c. Calculate Market Debt Ratio Instructions 10-K Document Questions income Statement Balance Sheet Statement of Cash Flows Below.25 or 25% Ratio Analysis + ICDEF Profitability Ratios 3 Net Profit Margin Net Income Total Revenues 2018 216355000 1041304000 2017 122327000 941297000 Calculate Net Profit Margin 0.207773138 0.129955795 Above 8% 2018 2017 4 Basic Earning Power (BEP) EBIT Total Assets, Multiply by 1,000 to compare Calculate BEP Above 12% ON Asset Management Ratios 5 Evaluating Receivables: Days Sales Outstanding a. Calculate Average Daily Sales Total revenues 365 days Average Sales per day Receivables (net .......) X 1000 Average Sales per Day 50 days or less b. Calculate Days Sales Outstanding 8 6 Explain the significance of your ratio calculations. Interin 10 r cumontuotions Income Statement Balance Sheet Statement of Cash Flows Ratio Analysis BIU - OA E Merge & Center - $ % & 68 Insert Delete LE COPI Format Painter Clipboard Conditional Format as Formatting Table Styles Cell Styles Font Alignment Number $753,514 $110,278 $24,212 $26,276 $0 $52,327 $37,096 $1,322,142) $725,292 $98,459 $25,566 $29,041 $39 $48,701 $42,043 $1,253,792 $28,222.00 $11,819.00 -$1,354.00 -$2,765.00 -$39.00 $3,626.00 -$4,947.00 $68,350.00 3.89% 12.00% 5.30% -9.52% -100.00% 7.45% 1177.00% 5.45% Long-term debt Long-term portion Deferred compensation and retirement plan obligations Income taxes payable Deferred income taxes Liability for guest loyalty program Other liabilities Total liabilities Commitments and Contingencies Common stock, $0.01 par value; 160,000,000 shares authorized; 95,065,638 shares issued at December 31, 2018 and December 31, 2017; 55,679,207 and 56,679,968 shares outstanding at December 31, 2018 and December 31, 2017, respectively Additional paid-in-capital Accumulated other comprehensive loss Treasury stock, at cost; 39,386,431 and 38,385,670 shares at December 31, 2018 and December 31, 2017, respectively Retained earnings Total shareholders' deficit Total liabilities and shareholders' deficit $951 $213,170 $5,446 $951 $182,448 -$4,699 $0.00 $30,722.00 -$747.00 0.00% 16.84% 15.90% -$1,187,625 $795,178 $183,772 $1,138,370 -$1,064,573 $627,272 -$258,601 $995,191 -$123,052.00 $167,906.00 $74,829.00 $143,179.00 11.56% 26.77% -28.94% 14.39% Questions: 1. Choice Hotels works with franchisees who operate hotels under one of the Choice Hotels' brands such as Cambria Hotels, Sleep Inn, and Econo Lodge. The Balance Shed Copy 3 Format Painter Clipboard B U Sort & Filter Find & Select G A . EE Merge & Center - $ % 9 68 48 Conditional Format as Cell IntDelete Format Formatting Table Styles Clear Number The most significant trend on my horizontal analysis over the 3 yr period is the steady increase in net income/total revenue. As indicated by the numbers, it is obvious X f Dec 31, 2018 12 Months Ended Dec 31, 2016 is change 2017 to 2018 % Change 2017 to 2018 S Change 2016 to 2017 Change 2016 to 2017 $376,676,000 $26,072,000 $52,088,000 $543,677,000 $42,791,000 $1,041,304,000 $341,745,000 $23,038,000 $40,451,000 $499,625,000 $36,438,000 $941,297,000 $317,699,000 $19,720,000 $35,844,000 $409,120,000 $25,526,000 $807,909,000 $34,931,000.00 $3,034,000.00 $11,637,000.00 $44,052,000.00 $6,353,000.00 $100,007,000.00 $10 $13 $29 $9 $17 $24,046,000.00 $3,318,000.00 $4,607,000.00 $90,505,000.00 $10,912,000.00 $133,388,000.00 2294 179 53 115 $11 $170,027,000 $14,330,000 $534,266,000 $718,623,000 $4,289,000 $82,000 $318,474,000 $154,720,000 $6,996,000 $459,765,000 $621,481,000 Horizontal Analysis Consolidated Statements of Income - USD ($) REVENUES: Royalty fees Initial franchise and relicensing fees Procurement services Marketing and reservation system Other Total revenues OPERATING EXPENSES: Selling, general and administrative Depreciation and amortization Marketing and reservation system Total operating expenses Impairment of goodwill Gain on sale of assets, net Operating income OTHER INCOME AND EXPENSES, NET: Interest expense Interest income Other gain) loss Equity in net (income) loss of affiliates Total other income and expenses.net Income before income taxes Income taxes Net Income Basic earnings per share: Basic earnings per share (in dollars per share) Diluted earnings per share in dollars per share) $165,821,000 $6,680,000 $479,400.000 $651,901,000 $0 $257.000 $289,653,000 $4,206,000.00 $7,650,000.00 $54,866,000.00 $66,722,000.00 -$4,289,000.00 -$175,000.00 $28,821,000.00 $10 $11,101,000.00 $316,000.00 $19,635,000.00 $30,420,000.00 $0.00 -$370,000.00 $102,598,000.00 SO S681 5946 $627,000 $187,055,000 S10 5596 $2 196 6796 115% -1024% $45,908,000 $7,452,000 $1,437,000 $5,323,000 $45,216,000 $ 273,258,000 $56,903,000 $216,355,000 $45,039,000 $5,920,000 $3,229,000 $4,546,000 $40,436,000 $249,217,000 $126,890,000 $122,327,000 $44,446,000 $3,535,000 $1,504,000 -$492,000 $38.915,000 $148,140,000 $41,428,000 $106,712,000 5869,000.00 -$1,532.000.00 $4,666,000.00 $777,000.00 $4,780,000.00 $24,041,000.00 $69,987,000.00 $94.028,000.00 S26 ($145) $17 $12 $10 (955) $593,000.00 $2,385,000.00 $1,725,000.00 $5,038,000.00 $1,521,000.00 $101,077,000.00 $85,462,000.00 $15,615,000.00 6896 20696 $77 1594 $1.67 $77 14% $3.83 $3.80 $2.16 $2.15 $1.90 $1.89 $0.26 $0.26 $1.65 $77 14% Instructions 10-K Document Questions Balance Sheet Income Statement Statement of cash flows Ratio Analysis Count: 2 Dec 31, 2018 Dec 31, 2017 Dec. 31, 2016 $216,355,000 $122,327,000 $106,712,000 $14,330,000 $6,680,000 $6,996,000 $19,597,000 $9,239,000 $4,289,000 $56,000 $10,542,000 $15,986,000 $3,695,000 $3,510,000 $20,609,000 $7,191,000 $0 $237,000 $5,514,000 $22,857,000 $772,000 $57,106,000 $20,663,000 $6,423,000 $0 -$571,000 $3,365,000 $15,346,000 $1,059,000 -$29,723,000 Consolidated Statements of Cash Flows CASH FLOWS FROM OPERATING ACTIVITIES Net income Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization Depreciation and amortization - marketing and reservation system Franchise agreement acquisition cost amortization Impairment of goodwill Gain on disposal of assets, net Provision for bad debts, net Non-cash stock compensation and other charges Non-cash interest and other investment income) loss Deferred income taxes Equity in net losses from unconsolidated joint ventures, less distributions received Franchise agreement acquisition cost, net of reimbursements Change in working capital and other, net of acquisition Net cash provided by operating activities CASH FLOWS FROM INVESTING ACTIVITIES Investment in property and equipment Investment in intangible assets Proceeds from sales of assets Asset acquisition, net of cash acquired Business acquisition, net of cash acquired Contributions to equity method investments Distributions from equity method investments Purchases of investments, employee benefit plans Instructions 10-K Document Questions Balance Sheet $7,389,000 -$52,929,000 $2,031,000 $242,896,000 $6,579,000 -$30,638,000 $40,158,000 $257,374,000 $1,025,000 -$17,410,000 $38,150,000 $152,035,000 $47,673,000 -$1,803,000 $3,053,000 $3,179,000 -$231,317,000 $9,604,000 $1,429,000 $2,895,000 Income Statement -$23,437,000 -$25,191,000 -$2,517,000 -$2,580,000 $1,000,000 $11,462,000 $28,583,000 $1,341,000 -$50,554,000 -$34,661,000 $4,569,000 $3,700,000 -$2,447,000 $1,661,000 Statement of Cash Flows Ratio Analysis Clipboard Font Alignment Number Styles B64 Investment in intangible asset appearing under the head cash flow from investing activities refers to the amount of cash paid during the year for purchase or deles $2,825,000 $36,045,000 $4,997,000 -$1,040,000 $321,252,000 D $2,245,000 $19,738,000 $655,000 $109,000 $90,115,000 $1,911,000 $32,604,000 $11,070,000 $11,000 $98,467,000 $9,037,000 $0 $20,600,000 -$603,000 $0 Proceeds from sales of investments, employee benefit plans Issuance of notes receivable Collections of notes receivable Other items, net Net cash used in investing activities CASH FLOWS FROM FINANCING ACTIVITIESE Proceeds from issuance of long term debt Net (repayments) borrowings pursuant to revolving credit facilities Principal payments on long-term debt Proceeds from other debt agreements Debt issuance costs Purchases of treasury stock Dividends paid Proceeds from transfer of interest in notes receivable Proceeds from exercise of stock options Net cash used in financing activities Net change in cash and cash equivalents Effect of foreign exchange rate changes on cash and cash equivalents Cash and cash equivalents at beginning of period Cash and cash equivalents at end of period Cash payments during the year for: Income taxes, net of refunds Interest, net of capitalized interest Non-cash investing and financing activities: Dividends declared but not paid Investment in property, equipment and intangibles acquired in accounts payable and accrued liabilities Instructions 10-K Document Questions Balance Sheet $25,795,000 -$988,000 $550,000 -$284,000 -$35,926,000 $46,182,000 $115,003,000 -$660,000 $0 SO $9,807,000 $48,651,000 $24,237,000 $14,107,000 $135,777,000 $31,482,000 -$2,590,000 $148,679,000 $48,715,000 $173,000 $41,360,000 -$129,417,000 -$207,773,000 SO $12,951,000 - $44,084,000 $9,484,000 -$921,000 $235,336,000 $26,642,000 $1,391,000 $202,463,000 $235,336,000 $462,000 $193,441,000 $202,463,000 $77,357,000 $43,254,000 $39,181,000 $42,405,000 $65,683,000 $41,992,000 $11,977,000 $12,185,000 $12,112,000 $5,949,000 $1,099,000 $3,648,000 Income Statement Statement of Cash Flows Ratio Analysis Ready $11,911,000 $12,185,UUU $12,112,000 Dividends declared but not palu Investment in property, equipment and intangibles acquired in accounts payable and accrued liabilities Sale of investment in unconsolidated joint venture Seller-financing to purchaser $5,949,000 $1,099,000 So $0 $3,648,000 $2,350,000 $0 So $2,000,000 Questions: 1. When you examine the Statement of Cash Flows, you recognize an Asset Acquisition. What business did Choice Hotels acquire Cambria Hotels The aggregate purchase price was $29.0 million consisting of $28.7 million cash with additional $0.3 million of current Instructions 10-K Document Questions Balance Sheet Income Statement Statement of Cash Flows Ratio A Type here to search - e Instructions 1. Please enter the data from the previous tabs by clicking on the cell and typing = and then clicking on the desired cell. For example to enter Net Income for 2018 type and go to the income statement tab and click on cell 127. 2. Complete the calculations. 3. Explain the significance of your ratio calculations. Be careful, only Balance sheet numbers are in thousands. Income Statement and Cash Flow Statement numbers are as presented. Brigham, E; Ehrhardt, M. (2017). Chapter 3. Financial Management, Theory and Practice. Boston, MA: Cengage Learning Suggested level for a good result Solvency Ratios 1 Ability to Pay Interest: Times Interest Earned Ratio a. Calculate Earnings before Interest and Taxes (EBIT) 2018 2017 Add: mmodo PETERSRSR Operating income Depreciation and amortization EBIT Interest equals b. Calculate Times Interest Earned Ratio EBIT / Interest Above 4.5 Leverage Ratios 2 Market Debt Ratio a. Find Market Value of Equity from "Market Cap" in Yahoo Finance 2018 b. Calculate Total Debt + Market value of Equity Add: Total Debt Market Value of Equity Total: Total Debt + Market Value of Equity Instructions 10-K Document Questions Income Statement Balance Sheet Statement of Cash Flow Ratio Analysis O Type here to search D e L . @ e 12 Months Ended Horizontal Analysis Consolidated Balance Sheets - USD ($) $ in Thousands Dec 31, 2018 Dec 31, 2017 S Change 2017 to 2018 % Change 2017 to 2018 $235,336 $208,694.00 88.68% $125,870 $0 Current assets Cash and cash equivalents $26,642 Receivables (net of allowance for doubtful accounts of $15,905 and $12,221, respectively) $138,018 Income taxes receivable $10,122 Notes receivable, net of allowances $36,759 Other current assets $32,243 Total current assets $243,784 Property and equipment, at cost, net $127,535 Goodwill $168,996 Intangible assets, net $271,113 Notes receivable, net of allowances $83,440 Investments, employee benefit plans, at fair value $19,398 Investments in unconsolidated entities $109,016 Deferred income taxes $30,613 Other assets $84,400 Total assets $1,138,370 Current liabilities Accounts payable $73,511 Accrued expenses and other current liabilities $92,651 Deferred Revenue $67,614 Liability for guest loyalty program $83,566 Current portion of long-term debt $1,097 Total current liabilities $318,439 Long-term debt $753,514 Instructions 10-K Document Questions Balance Sheet Income Statement $13,256 $25,967 $400,429 $83,374 $80,757 $100,492 $80,136 $20,838 $134,226 $27,224 $67,715 $995,191 $12,148.00 $10,122.00 $23,503.00 $6,276.00 -$156,645.00 $44,161.00 $88,239.00 $170,696.00 $3,304.00 $1,440.00 -$25,210.00 $3,389.00 $16,685.00 $143,179.00 9.65% 0.00% 177.30% 24.17% -39.12% 52.97% 109.26% 169.86% 4.12% -6.91% - 18.78% 12.45% 24.64% 14.39% $67,839 $84,315 $52,142 $79,123 $1,232 $284,651 $725,292 Statement of Cash Flows $5,672.00 $8,336.00 $15,472.00 $4,443.00 -$135.00 $33,788.00 $28,222.00 Ratio Analysis 8.36% 9.89% 29.67% 5.62% -10.96% 11.87% 3.89% Formatting Styles Table Styles Clipboard Font Alignment Number $110,278 $24,212 $26,276 $0 $98,459 $25,566 $29,041 $39 $48,701 $42,043 $1,253,792 $11,819.00 -$1,354.00 -$2,765.00 -$39.00 $3,626.00 -$4,947.00 $68,350.00 12.00% -5.30% -9.52% -100.00% 7.45% -1177.00% 5.45% $52,327 $37,096 $1,322,142 Long-term portion Deferred compensation and retirement plan obligations Income taxes payable Deferred income taxes Liability for guest loyalty program Other liabilities Total liabilities Commitments and Contingencies Common stock, $0.01 par value; 160,000,000 shares authorized; 95,065,638 shares issued at December 31, 2018 and December 31, 2017; 55,679,207 and 56,679,968 shares outstanding at December 31, 2018 and December 31, 2017, respectively Additional paid-in-capital Accumulated other comprehensive loss Treasury stock, at cost; 39,386,431 and 38,385,670 shares at December 31, 2018 and December 31, 2017, respectively Retained earnings Total shareholders' deficit Total liabilities and shareholders' deficit 0.00 $951 $213,170 -$5,446 $951 $182,448 -$4,699 $0.00 $30,722.00 -$747.00 16.84% 15.90% -$1,187,625 $795,178 -$183,772 $1,138,370 -$1,064,573 $627,272 -$258,601 $995,191 $123,052.00 $167,906.00 $74,829.00 $143,179.00 11.56% 26.77% -28.94% 14.39% Questions: 1. Choice Hotels works with franchisees who operate hotels under one of the Choice Hotels brands such as Cambria Hotels, Sleep Inn, and Econo Lodge. The Bala Consolidated Statements of Cash Flows Dec. 31, 2018 Dec. 31, 2017 Dec. 31, 2016 CASH FLOWS FROM OPERATING ACTIVITIES Net income $216,355,000 $122,327,000 $106,712,000 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization $14,330,000 $6,680,000 $6,996,000 Depreciation and amortization - marketing and reservation system $19,597,000 $20,609,000 $20,663,000 Franchise agreement acquisition cost amortization $9,239,000 $7,191,000 $6,423,000 Impairment of goodwill $4,289,000 $0 S . $0 Gain on disposal of assets, net $56,000 -$237,000 $571,000 Provision for bad debts, net $10,542,000 $5,514,000 $3,365,900 Non-cash stock compensation and other charges $15,986,000 $22,857,000 $15,346,000 Non-cash interest and other investment (income) loss $3,695,000 -$772,000 $1,059,000 Deferred income taxes $3,510,000 $57,106,000 $29,723,000 Equity in net losses from unconsolidated joint ventures, less distributions received $7,389,000 $6,579,000 $1,025,000 Franchise agreement acquisition cost, net of reimbursements -$52,929,000 -$30,638,000 $17,410,000 Change in working capital and other, net of acquisition -$2,031,000 $40,158,000 $38,150,000 Net cash provided by operating activities $242,896,000 $257,374,000 $152,035,000 CASH FLOWS FROM INVESTING ACTIVITIES Investment in property and equipment -$47,673,000 $23,437,000 -$25,191,000 Investment in intangible assets $1,803,000 -$2,517,000 -$2,580,000 Proceeds from sales of assets $3,053,000 $1,000,000 $11,462,000 Asset acquisition, net of cash acquired $3,179,000 -$28,583,000 Business acquisition, net of cash acquired $231,317,000 $o -$1,341,000 Contributions to equity method investments -$9,604,000 $50,554,000 -$34,661,000 Distributions from equity method investments $1,429,000 $4,569,000 $3,700,000 Purchases of investments, employee benefit plans -$2,895,000 -$2,447,000 -$1,661,000 Instructions 10-K Document Questions Balance Sheet Income Statement Statement of Cash Flows Ratio Analysis non ENSIN ) JIT TUN HUILJUDULL ILIISU U UNUI Lash paid during the year for G H $2,825,000 $36,045,000 $4,997,000 -$1,040,000 $321,252,000 $2,245,000 $19,738,000 $655,000 $109,000 -$90,115,000 $1,911,000 -$32,604,000 $11,070,000 $11,000 - $98,467,000 $9,037,000 $0 $0 $115,003,000 -$660,000 $25,795,000 -$988,000 $550,000 -$284,200 $35,926,000 $46,182,000 SO Proceeds from sales of investments, employee benefit plans Issuance of notes receivable Collections of notes receivable Other items, net Net cash used in investing activities CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from issuance of long term debt Net (repayments) borrowings pursuant to revolving credit facilities Principal payments on long-term debt Proceeds from other debt agreements Debt issuance costs Purchases of treasury stock Dividends paid Proceeds from transfer of interest in notes receivable Proceeds from exercise of stock options Net cash used in financing activities Net change in cash and cash equivalents Effect of foreign exchange rate changes on cash and cash equivalents Cash and cash equivalents at beginning of period Cash and cash equivalents at end of period Cash payments during the year for: Income taxes, net of refunds Interest, net of capitalized interest Non-cash investing and financing activities: Dividends declared but not paid Investment in property, equipment and intangibles acquired in accounts payable and accrued liabilities Instructions 10- Document Questions Balance sheet $20,600,000 $603,000 $0 | $2,590,000 -$148,679,000 -$48,715,000 $173,000 $41,360,000 $129,417,000 $207,773,000 So $9,807,000 -$48,651,000 $24,237,000 $14,107,000 $135,777,000 $31,482,000 $12,951,000 $44,084,000 $9,484,000 -$921,000 $235,336,000 $26,642,000 $1,391,000 S202,463,000 $235,336,000 $462,000 $193,441,000 $202,463,000 $77,357,000 $43,254,000 $39,181,000 $42,405,000 $65,683,000 $41,992,000 $11.977,000 $12,185,000 $12,112,000 $5,949,000 income Statement 51,099,000 $3,648,000 Statement of Cash Flows Ratio Analysis DE 1. Please enter the data from the previous tabs by clicking on the cell and typing and then clicking on the desired cell. For example to enter Net Income for 2018 type = and go to the income statement tab and click on cell 127. 2. Complete the calculations. 3. Explain the significance of your ratio calculations. Be careful, only Balance sheet numbers are in thousands. Income Statement and Cash Flow Statement numbers are as presented. Brigham, E; Ehrhardt, M. (2017). Chapter 3. Financial Management, Theory and Practice. Boston, MA: Cengage Learning Suggested level for a good result Solvency Ratios 1 Ability to Pay Interest: Times Interest Earned Ratio a. Calculate Earnings before interest and Taxes (EBIT) 2018 Add: Operating income Depreciation and amortization EBIT equals Interest b. Calculate Times Interest Earned Ratio EBIT / Interest Above 4.5 Leverage Ratios 2 Market Debt Ratio a. Find Market Value of Equity from "Market Cap" in Yahoo Finance 2018 796,223 b. Calculate Total Debt + Market Value of Equity Add: Total Debt Market Value of Equity Total: Total Debt + Market Value of Equity 8 c. Calculate Market Debt Ratio Instructions 10-K Document Questions income Statement Balance Sheet Statement of Cash Flows Below.25 or 25% Ratio Analysis + ICDEF Profitability Ratios 3 Net Profit Margin Net Income Total Revenues 2018 216355000 1041304000 2017 122327000 941297000 Calculate Net Profit Margin 0.207773138 0.129955795 Above 8% 2018 2017 4 Basic Earning Power (BEP) EBIT Total Assets, Multiply by 1,000 to compare Calculate BEP Above 12% ON Asset Management Ratios 5 Evaluating Receivables: Days Sales Outstanding a. Calculate Average Daily Sales Total revenues 365 days Average Sales per day Receivables (net .......) X 1000 Average Sales per Day 50 days or less b. Calculate Days Sales Outstanding 8 6 Explain the significance of your ratio calculations. Interin 10 r cumontuotions Income Statement Balance Sheet Statement of Cash Flows Ratio Analysis BIU - OA E Merge & Center - $ % & 68 Insert Delete LE COPI Format Painter Clipboard Conditional Format as Formatting Table Styles Cell Styles Font Alignment Number $753,514 $110,278 $24,212 $26,276 $0 $52,327 $37,096 $1,322,142) $725,292 $98,459 $25,566 $29,041 $39 $48,701 $42,043 $1,253,792 $28,222.00 $11,819.00 -$1,354.00 -$2,765.00 -$39.00 $3,626.00 -$4,947.00 $68,350.00 3.89% 12.00% 5.30% -9.52% -100.00% 7.45% 1177.00% 5.45% Long-term debt Long-term portion Deferred compensation and retirement plan obligations Income taxes payable Deferred income taxes Liability for guest loyalty program Other liabilities Total liabilities Commitments and Contingencies Common stock, $0.01 par value; 160,000,000 shares authorized; 95,065,638 shares issued at December 31, 2018 and December 31, 2017; 55,679,207 and 56,679,968 shares outstanding at December 31, 2018 and December 31, 2017, respectively Additional paid-in-capital Accumulated other comprehensive loss Treasury stock, at cost; 39,386,431 and 38,385,670 shares at December 31, 2018 and December 31, 2017, respectively Retained earnings Total shareholders' deficit Total liabilities and shareholders' deficit $951 $213,170 $5,446 $951 $182,448 -$4,699 $0.00 $30,722.00 -$747.00 0.00% 16.84% 15.90% -$1,187,625 $795,178 $183,772 $1,138,370 -$1,064,573 $627,272 -$258,601 $995,191 -$123,052.00 $167,906.00 $74,829.00 $143,179.00 11.56% 26.77% -28.94% 14.39% Questions: 1. Choice Hotels works with franchisees who operate hotels under one of the Choice Hotels' brands such as Cambria Hotels, Sleep Inn, and Econo Lodge. The Balance Shed Copy 3 Format Painter Clipboard B U Sort & Filter Find & Select G A . EE Merge & Center - $ % 9 68 48 Conditional Format as Cell IntDelete Format Formatting Table Styles Clear Number The most significant trend on my horizontal analysis over the 3 yr period is the steady increase in net income/total revenue. As indicated by the numbers, it is obvious X f Dec 31, 2018 12 Months Ended Dec 31, 2016 is change 2017 to 2018 % Change 2017 to 2018 S Change 2016 to 2017 Change 2016 to 2017 $376,676,000 $26,072,000 $52,088,000 $543,677,000 $42,791,000 $1,041,304,000 $341,745,000 $23,038,000 $40,451,000 $499,625,000 $36,438,000 $941,297,000 $317,699,000 $19,720,000 $35,844,000 $409,120,000 $25,526,000 $807,909,000 $34,931,000.00 $3,034,000.00 $11,637,000.00 $44,052,000.00 $6,353,000.00 $100,007,000.00 $10 $13 $29 $9 $17 $24,046,000.00 $3,318,000.00 $4,607,000.00 $90,505,000.00 $10,912,000.00 $133,388,000.00 2294 179 53 115 $11 $170,027,000 $14,330,000 $534,266,000 $718,623,000 $4,289,000 $82,000 $318,474,000 $154,720,000 $6,996,000 $459,765,000 $621,481,000 Horizontal Analysis Consolidated Statements of Income - USD ($) REVENUES: Royalty fees Initial franchise and relicensing fees Procurement services Marketing and reservation system Other Total revenues OPERATING EXPENSES: Selling, general and administrative Depreciation and amortization Marketing and reservation system Total operating expenses Impairment of goodwill Gain on sale of assets, net Operating income OTHER INCOME AND EXPENSES, NET: Interest expense Interest income Other gain) loss Equity in net (income) loss of affiliates Total other income and expenses.net Income before income taxes Income taxes Net Income Basic earnings per share: Basic earnings per share (in dollars per share) Diluted earnings per share in dollars per share) $165,821,000 $6,680,000 $479,400.000 $651,901,000 $0 $257.000 $289,653,000 $4,206,000.00 $7,650,000.00 $54,866,000.00 $66,722,000.00 -$4,289,000.00 -$175,000.00 $28,821,000.00 $10 $11,101,000.00 $316,000.00 $19,635,000.00 $30,420,000.00 $0.00 -$370,000.00 $102,598,000.00 SO S681 5946 $627,000 $187,055,000 S10 5596 $2 196 6796 115% -1024% $45,908,000 $7,452,000 $1,437,000 $5,323,000 $45,216,000 $ 273,258,000 $56,903,000 $216,355,000 $45,039,000 $5,920,000 $3,229,000 $4,546,000 $40,436,000 $249,217,000 $126,890,000 $122,327,000 $44,446,000 $3,535,000 $1,504,000 -$492,000 $38.915,000 $148,140,000 $41,428,000 $106,712,000 5869,000.00 -$1,532.000.00 $4,666,000.00 $777,000.00 $4,780,000.00 $24,041,000.00 $69,987,000.00 $94.028,000.00 S26 ($145) $17 $12 $10 (955) $593,000.00 $2,385,000.00 $1,725,000.00 $5,038,000.00 $1,521,000.00 $101,077,000.00 $85,462,000.00 $15,615,000.00 6896 20696 $77 1594 $1.67 $77 14% $3.83 $3.80 $2.16 $2.15 $1.90 $1.89 $0.26 $0.26 $1.65 $77 14% Instructions 10-K Document Questions Balance Sheet Income Statement Statement of cash flows Ratio Analysis Count: 2 Dec 31, 2018 Dec 31, 2017 Dec. 31, 2016 $216,355,000 $122,327,000 $106,712,000 $14,330,000 $6,680,000 $6,996,000 $19,597,000 $9,239,000 $4,289,000 $56,000 $10,542,000 $15,986,000 $3,695,000 $3,510,000 $20,609,000 $7,191,000 $0 $237,000 $5,514,000 $22,857,000 $772,000 $57,106,000 $20,663,000 $6,423,000 $0 -$571,000 $3,365,000 $15,346,000 $1,059,000 -$29,723,000 Consolidated Statements of Cash Flows CASH FLOWS FROM OPERATING ACTIVITIES Net income Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization Depreciation and amortization - marketing and reservation system Franchise agreement acquisition cost amortization Impairment of goodwill Gain on disposal of assets, net Provision for bad debts, net Non-cash stock compensation and other charges Non-cash interest and other investment income) loss Deferred income taxes Equity in net losses from unconsolidated joint ventures, less distributions received Franchise agreement acquisition cost, net of reimbursements Change in working capital and other, net of acquisition Net cash provided by operating activities CASH FLOWS FROM INVESTING ACTIVITIES Investment in property and equipment Investment in intangible assets Proceeds from sales of assets Asset acquisition, net of cash acquired Business acquisition, net of cash acquired Contributions to equity method investments Distributions from equity method investments Purchases of investments, employee benefit plans Instructions 10-K Document Questions Balance Sheet $7,389,000 -$52,929,000 $2,031,000 $242,896,000 $6,579,000 -$30,638,000 $40,158,000 $257,374,000 $1,025,000 -$17,410,000 $38,150,000 $152,035,000 $47,673,000 -$1,803,000 $3,053,000 $3,179,000 -$231,317,000 $9,604,000 $1,429,000 $2,895,000 Income Statement -$23,437,000 -$25,191,000 -$2,517,000 -$2,580,000 $1,000,000 $11,462,000 $28,583,000 $1,341,000 -$50,554,000 -$34,661,000 $4,569,000 $3,700,000 -$2,447,000 $1,661,000 Statement of Cash Flows Ratio Analysis Clipboard Font Alignment Number Styles B64 Investment in intangible asset appearing under the head cash flow from investing activities refers to the amount of cash paid during the year for purchase or deles $2,825,000 $36,045,000 $4,997,000 -$1,040,000 $321,252,000 D $2,245,000 $19,738,000 $655,000 $109,000 $90,115,000 $1,911,000 $32,604,000 $11,070,000 $11,000 $98,467,000 $9,037,000 $0 $20,600,000 -$603,000 $0 Proceeds from sales of investments, employee benefit plans Issuance of notes receivable Collections of notes receivable Other items, net Net cash used in investing activities CASH FLOWS FROM FINANCING ACTIVITIESE Proceeds from issuance of long term debt Net (repayments) borrowings pursuant to revolving credit facilities Principal payments on long-term debt Proceeds from other debt agreements Debt issuance costs Purchases of treasury stock Dividends paid Proceeds from transfer of interest in notes receivable Proceeds from exercise of stock options Net cash used in financing activities Net change in cash and cash equivalents Effect of foreign exchange rate changes on cash and cash equivalents Cash and cash equivalents at beginning of period Cash and cash equivalents at end of period Cash payments during the year for: Income taxes, net of refunds Interest, net of capitalized interest Non-cash investing and financing activities: Dividends declared but not paid Investment in property, equipment and intangibles acquired in accounts payable and accrued liabilities Instructions 10-K Document Questions Balance Sheet $25,795,000 -$988,000 $550,000 -$284,000 -$35,926,000 $46,182,000 $115,003,000 -$660,000 $0 SO $9,807,000 $48,651,000 $24,237,000 $14,107,000 $135,777,000 $31,482,000 -$2,590,000 $148,679,000 $48,715,000 $173,000 $41,360,000 -$129,417,000 -$207,773,000 SO $12,951,000 - $44,084,000 $9,484,000 -$921,000 $235,336,000 $26,642,000 $1,391,000 $202,463,000 $235,336,000 $462,000 $193,441,000 $202,463,000 $77,357,000 $43,254,000 $39,181,000 $42,405,000 $65,683,000 $41,992,000 $11,977,000 $12,185,000 $12,112,000 $5,949,000 $1,099,000 $3,648,000 Income Statement Statement of Cash Flows Ratio Analysis Ready $11,911,000 $12,185,UUU $12,112,000 Dividends declared but not palu Investment in property, equipment and intangibles acquired in accounts payable and accrued liabilities Sale of investment in unconsolidated joint venture Seller-financing to purchaser $5,949,000 $1,099,000 So $0 $3,648,000 $2,350,000 $0 So $2,000,000 Questions: 1. When you examine the Statement of Cash Flows, you recognize an Asset Acquisition. What business did Choice Hotels acquire Cambria Hotels The aggregate purchase price was $29.0 million consisting of $28.7 million cash with additional $0.3 million of current Instructions 10-K Document Questions Balance Sheet Income Statement Statement of Cash Flows Ratio A Type here to search - e