1. These financial analysis questions refer to the 2019 Financial Statements of MARRIOTT INTERNATIONAL INC., a company that owns more than 7,000 hotel properties in 131 countries of our globe. The three statements (Balance Sheet, Income Statement and Cash Flow Statement) have been attached at the bottom of this assignment. Please use formulas as learned in class, and show the numbers you are using. Also note that all numbers except earnings per share have been rounded to the nearest MILLION!!!!

a. Find the current ratios for 2019 and 2018, and state which year was stronger.

b. Find the quick ratios for 2019 and 2018,counting only the first two current assets as quick assets. Use the format x.xx

c. Find Shareholders' Equity as a % of Total Assets for 2019 and 2018 (Equity Ratio). Use the format x.xx%

d. Find Total Liabilities as a % of Total Assets for 2019 and 2018 (Debt Ratio). (Hint: in each year, your answers for c and d must add up to 100%.) Use the format x.xx%

e. Based on your calculations in parts d and e, did Marriott's financing becomemore orless dependent on Liabilities (borrowed money) from the end of 2018 to the end of 2019? Explain your answer.

f. Describe what happened to Marriott's Total Revenue during the 3 years (2017, 2018 and 2019) for which you have data---- did it stay the same, grow, shrink, some sort of mix.....?

g. Did the Net Income figures show the same pattern as Total Revenue during this three-year period?

h. What was the Net Income to Sales Revenue ratio in each of the years 2019, 2018 and 2017?

i. From the cash flow statement, tell me in which of the three years did Marriott sell some long term assets (they use the words "asset dispositions" for this), and did they make gains or losses on any such sales?

j. At the end of 2019, how many shares of Marriott existed? You can find this by dividing Earnings Per Share (diluted) for that year into the Net Income for that year, but please use theactual amount of Net Income dollars that Marriott earned, not the shortened version given in the Income Statement.

(20 marks, 2 per question)

II. Bryan Bessner has invested $600,000 in a small theatre. He would like to see a 10% after-tax return on his investment this year. Bryan faces a personal tax rate of 40%.

There are many costs involved in running a theatre. Estimates indicate that variable costs will use up 62% of the revenue earned by the theatre.

Fixed costs would be:

Salaries.....................$572,000

Insurance................... 30,000

License..................... 8,000

Utilities..................... 29,000

Also, depreciation on the theatre building itself would be 10% of the building's $1,000,000 book value.

Part of Bryan's investment in the theatre was used to buy equipment, costing $175,000. This equipment depreciates by 20% per year.

Part of Bryan's investment in the theatre came through a bank loan of $200,000, on which he will be paying 8% interest this year.

REQUIRED:

a. Please calculate the total amount of revenue that this theatre will need to earn this year, in order to meet all costs and allow for Bryan's expected after-tax return.

(6 marks)

b. If the theatre has 250 seats, and Bryan expects it to be open 4 nights per week for 50 weeks of the year, find the average seat price that must be charged in order to reach the revenue goal you calculated in part a above. Assume that on average, only 80% of seats can be sold each night.