Financial & Managerial Accounting
14th Edition
ISBN: 9781337119207
Author: Carl Warren, James M. Reeve, Jonathan Duchac
Publisher: Cengage Learning
expand_more
expand_more
format_list_bulleted
Videos
Textbook Question
Chapter 15, Problem 1ADM
Hilton Hotels and Marriott International: Occupancy
A recent annual report of Hilton Hotels and Marriott International provided the following occupancy data for two recent years:
| Year 2 | Year 1 | |
| Hilton Hotels | 74.6% | 72.2% |
| Marriott International | 73.3% | 713% |
- A. Is the occupaney trend favorable or unfavorable for Hilton Hotels?
- B. Is the occupancy trend favorable or unfavorable for Marriott International?
- C. Which company has the stronger occupancy?
- D. - What additional information would supplement occupancy in evaluating the performance of these two hotels?
Expert Solution & Answer
Trending nowThis is a popular solution!
Students have asked these similar questions
Hilton Worldwide Holdings Inc. (HLT) and Marriott International, Inc. (MAR) reported the following occupancy data for two recent years:
Hilton: Year 2: 57.2% - Year 1: 40.3%
Marriott :Year 2: 51.3% - Year 1: 31.4%
1. Comment on Hilton’s occupancy rate for Years 1 and 2.
2. Comment on Marriott’s occupancy rate for Years 1 and 2.
3. Which company has the highest occupancy rate?
4. What other factors should be considered in comparing Hilton and Marriott?
Benson Company’s net income was $225,000 for Year 1, $243,750 for Year 2, and $293,160 for Year 3. Assume trend percentages for net income over the three-year period are computed, with Year 1 serving as the base year.The trend percentage for Year 3’s net income is:
Select one:
A. 117.30%
B. 86.36%
C. 120.92%
D. 130.29%
Identify any favorable and unfavorable trends in the following income statements by preparing a vertical analysis. (Round percentages to two decimal places.)
Year 2
Year 1
Revenues
$394,000
$212,500
Operating expenses:
Wages expense
$ 79,000
$ 65,000
Rent expense
19,000
18,000
Utilities expense
21,000
14,200
Interest expense
7,500
7,800
Total operating expenses
$126,500
$105,000
Net income
$267,500
$107,500
Chapter 15 Solutions
Financial & Managerial Accounting
Ch. 15 - What are the major differentes between managerial...Ch. 15 - A. Differentiate between a department with line...Ch. 15 - What manufacturing cost term is used to describe...Ch. 15 - Prob. 4DQCh. 15 - What is the difference between a product cost and...Ch. 15 - Name the three inventory accounts for a...Ch. 15 - In What order should the three inventories of a...Ch. 15 - Prob. 8DQCh. 15 - Prob. 9DQCh. 15 - How does the Cost of Goods Sold section of the...
Ch. 15 - Management process Three phases of the management...Ch. 15 - Prob. 15.2BECh. 15 - Prime and conversion costs Identify the following...Ch. 15 - Product and period costs Identify the following...Ch. 15 - Cost of goods sold, cost of goods manufactured...Ch. 15 - Classifying costs as materials, labor, or factory...Ch. 15 - Classifying costs as materials, labor, or factory...Ch. 15 - Prob. 15.3EXCh. 15 - Classifying costs as product or period costs For...Ch. 15 - Concepts and terminology From the choices...Ch. 15 - Concepts and terminology From the choices...Ch. 15 - Prob. 15.7EXCh. 15 - Sustainability and Eco-Efficiency Measures Four...Ch. 15 - Classifying costs The following is a manufacturing...Ch. 15 - Financial statements of a manufacturing firm The...Ch. 15 - Manufacturing company balance sheet Partial...Ch. 15 - Cost of direct materials used in production for a...Ch. 15 - Cost of goods manufactured for a manufacturing...Ch. 15 - Cost of goods manufactured for a manufacturing...Ch. 15 - Income statement for a manufacturing company Two...Ch. 15 - Statement of cost of goods manufactured for a...Ch. 15 - Cost of goods sold, profit margin, and net income...Ch. 15 - Cost flow relationships The following information...Ch. 15 - Classifying costs The following is a list of costs...Ch. 15 - Classifying costs The following is a list of costs...Ch. 15 - Cost classifications for a service company A...Ch. 15 - Manufacturing income statement, statement of cost...Ch. 15 - Statement of cost of goods manufactured and income...Ch. 15 - Prob. 15.1BPRCh. 15 - Classifying costs The following is a list of costs...Ch. 15 - Prob. 15.3BPRCh. 15 - Manufacturing income statement, statement of cost...Ch. 15 - Statement of cost of goods manufactured and income...Ch. 15 - Hilton Hotels and Marriott International:...Ch. 15 - Comparing occupancy for two hotels Sunrise Suites...Ch. 15 - Prob. 3ADMCh. 15 - Passenger load on a flight Eastern Skies Airlines...Ch. 15 - Prob. 15.1TIFCh. 15 - Communication Todd Johnson is the Vice President...
Additional Business Textbook Solutions
Find more solutions based on key concepts
Bank loan; accrued interest LO132 On October 1, Eder Fabrication borrowed 60 million and issued a nine-month, ...
INTERMEDIATE ACCOUNTING
Discussion Analysis A13-41 Discussion Questions 1. How do managers use the statement of cash flows? 2. Describ...
Managerial Accounting (4th Edition)
How is activity-based costing useful for pricing decisions?
Cost Accounting (15th Edition)
Fundamental and Enhancing Characteristics. Identify whether the following items are fundamental characteristics...
Intermediate Accounting
Dave Nelson recently retired at age 48, courtesy of the numerous stock options he had been granted while presid...
Managerial Accounting: Creating Value in a Dynamic Business Environment
Place the letter of the appropriate accounting cost in Column 2 in the blank next to each decision category in ...
Fundamentals Of Cost Accounting (6th Edition)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Juroe Company provided the following income statement for last year: Juroes balance sheet as of December 31 last year showed total liabilities of 10,250,000, total equity of 6,150,000, and total assets of 16,400,000. Required: 1. Calculate the return on sales. (Note: Round the percent to two decimal places.) 2. CONCEPTUAL CONNECTION Briefly explain the meaning of the return on sales ratio, and comment on whether Juroes return on sales ratio appears appropriate.arrow_forwardRalph Lauren Corporation sells apparel through company-owned retail stores. Recent financial information for Ralph Lauren follows (in thousands): Please see the attachment for details: Assume that the apparel industry average return on total assets is 8.0% and the average return on stockholders’ equity is 10.0% for the year ended April 2, Year 3.a. Determine the return on total assets for Ralph Lauren for fiscal Years 2 and 3. Round percentages to one decimal place.b. Determine the return on stockholders’ equity for Ralph Lauren for fiscal Years 2 and 3. Round percentages to one decimal place.c. Evaluate the two-year trend for the profitability ratios determined in (a) and (b).d. Evaluate Ralph Lauren’s profit performance relative to the industry.arrow_forwardCategory of industry is real estate. The analysis of Days Sales Outstanding is as follows: 2015: 254 days 2016: 338 days 2017: 332 days 2018: 169 days 2019: 81 days a. What is the simple trend analysis for that Days Sales Outstanding and why it is increasing and decreasing? b. Compare the ratio with the industry average.arrow_forward
- 9 - The income statement of a Business for the period 2019 is as follows: 31.12.2019 % Gross sales 45.200 TL 102.72 Discounts From Sales 1.200 TL 2.72 Net Sales 44,000 TL 100.00 Cost of sales 12.500 TL 28.41 Gross Profit on Sales 31,500 TL 71.59 This table was prepared according to which of the following analysis methods? a) Technical analysis B) Analysis with Vertical Percentage Method NS) Ratio Analysis D) Comparative Tables Analysis TO) Trend Percentages Analysisarrow_forwardRevenue and expense data for Innovation Quarter Inc. for two recent years are as follows: Current Year Previous Year Sales $ 2,720,000 $2,050,000 Cost of goods sold 1,675,520 1,111,100 Selling expenses 320,960 319,800 Administrative expenses 424,320 262,400 Income tax expense 152,320 118,900 A. Prepare an income statement in comparative form, stating each item for both years as a percent of sales. Round your percentages answers to one decimal place. Enter all amounts as positive numbers. B. Comment on the significant changes disclosed by the comparative income statement.arrow_forwardCompute trend percentages for the following items taken from the financial statements of Lopez Plumbing over a five-year period. Treat 2014 as the base year. State whether the trends are favorable or unfavorable. (Dollar amounts are stated in thousands.) 2018 2017 2016 2015 2014 Sales $81,400 $74,000 $61,500 $59,000 $50,000 Cost of Goods Sold 58,500 48,000 40,500 37,000 30,000arrow_forward
- A company’s sales in the prior year were $300,000 and in the current year were $351,000. Using the prior year as the base year, the sales trend percent for the current year is a. 17%. c. 100%. e. 48%. b. 85%. d. 117%.arrow_forwardRevenue and expense data for Innovation Quarter Inc. for two recent years are as follows: Current Year Previous Year Sales $ 2,920,000 $2,150,000 Cost of goods sold 1,769,520 1,182,500 Selling expenses 332,880 322,500 Administrative expenses 449,680 279,500 Income tax expense 169,360 116,100 A. Prepare an income statement in comparative form, stating each item for both years as a percent of sales. Round your percentages answers to one decimal place. Enter all amounts as positive numbers. B. Comment on the significant changes disclosed by the comparative income statement. Innovation Quarter Inc. Comparative Income Statement For the Years Ended December 31 1 Current year Current year Previous year Previous year 2 Amount Percent Amount Percent 3 Sales $2,920,000.00 $2,150,000.00 4 Cost of goods sold 1,769,520.00 1,182,500.00 5 Gross profit $1,150,480.00…arrow_forwardAccounting Car Company's sales in Year 1 were $390,000 and in Year 2 were $427,500. Using Year 1 as the base year, the trend percent for year 2 is: 10% 100% 91% 9% 110%arrow_forward
- Revenue and expense data for Innovation Quarter Inc. for two recent years are as follows: Current Year Previous Year Sales $488,000 $415,000 Cost of goods sold 312,320 232,400 Selling expenses 68,320 74,700 Administrative expenses 78,080 62,250 Income tax expense 9,760 16,600 a. Prepare an income statement in comparative form, stating each item for both years as a percent of sales. If required, round percentages to one decimal place. Enter all amounts as positive numbers.arrow_forwardFinancial Statement Notes: Quarterly DataQuarterly data are presented below for Company A and Company B. One of these companies is Gibson Greetings, Inc., which manufactures and sells greeting cards. The other company is Hon Industries, Inc., which manufactures and sells office furniture. Both companies are on a calendar year basis. (Amounts in Thousands) FirstQuarter SecondQuarter ThirdQuarter FourthQuarter Year Company A Net sales $186,111 $177,537 $203,070 $213,608 $780,326 Gross profit 55,457 53,643 64,024 69,374 242,498 Company B Net sales $84,896 $83,796 $142,137 $235,336 $546,165 Gross profit 53,900 52,983 66,018 104,961 277,862 Requireda. Compute the percent of annual net sales generated each quarter by Company A. Round to the nearest percent.b. Compute the percent of annual net sales generated each quarter by Company B. Round to the nearest percent. FirstQuarter SecondQuarter ThirdQuarter FourthQuarter a. Company A…arrow_forwardFinancial Statement Notes: Quarterly DataQuarterly data are presented below for Company A and Company B. One of these companies is Gibson Greetings, Inc., which manufactures and sells greeting cards. The other company is Hon Industries, Inc., which manufactures and sells office furniture. Both companies are on a calendar year basis. (Amounts in Thousands) FirstQuarter SecondQuarter ThirdQuarter FourthQuarter Year Company A Net sales $186,111 $177,537 $203,070 $213,608 $780,326 Gross profit 55,457 53,643 64,024 69,374 242,498 Company B Net sales $84,896 $83,796 $142,137 $235,336 $546,165 Gross profit 53,900 52,983 66,018 104,961 277,862 Requireda. Compute the percent of annual net sales generated each quarter by Company A. Round to the nearest percent.b. Compute the percent of annual net sales generated each quarter by Company B. Round to the nearest percent. FirstQuarter SecondQuarter ThirdQuarter FourthQuarter a. Company A…arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Managerial AccountingAccountingISBN:9781337912020Author:Carl Warren, Ph.d. Cma William B. TaylerPublisher:South-Western College Pub
Financial And Managerial AccountingAccountingISBN:9781337902663Author:WARREN, Carl S.Publisher:Cengage Learning,
Managerial Accounting: The Cornerstone of Busines...AccountingISBN:9781337115773Author:Maryanne M. Mowen, Don R. Hansen, Dan L. HeitgerPublisher:Cengage Learning
Financial AccountingAccountingISBN:9781337272124Author:Carl Warren, James M. Reeve, Jonathan DuchacPublisher:Cengage Learning
Managerial Accounting
Accounting
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:South-Western College Pub
Financial And Managerial Accounting
Accounting
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:Cengage Learning,
Managerial Accounting: The Cornerstone of Busines...
Accounting
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Cengage Learning
Financial Accounting
Accounting
ISBN:9781337272124
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Cengage Learning
What is Risk Management? | Risk Management process; Author: Educationleaves;https://www.youtube.com/watch?v=IP-E75FGFkU;License: Standard youtube license