Accounting for Managers

This is a milestone submission for steps 1-3, so it won’t be graded.  You are allowed 1 milestone submission for each step. Your step 5 submission will be graded. Here is the feedback for step 1:

Income Statement

· Questions 1-2a, 3-9, 11, and 14 are correct, good job.

· Question 2b is partially correct. CHH did not earn a profit in the past

· Question 10 is incorrect. Since you did not show your work, I can’t determine what is wrong.

· Questions 12 and 13 are incorrect. Read page 37 of the 10-Q

· Question 15 was not answered.

· Question 16 is incorrect. Look for the account in the Income Statement.

 

Balance Sheet

· Questions 1-3, 6-7, 10, and 13 are correct, good job.

· Question 4 is incorrect. Read page 21 of the 10-Q

· Question 5 is partially correct. Look at the dividend in relationship to total assets and a negative total equity.

· Question 8 is incorrect. Read Footnote 5 on page 16

· Question 9 is partially correct. How many hotels and hotel rooms were under franchise?

· Question 10 is incorrect. The current ratio formula is Current Assets divided by Current Liabilities. Since you did not show your work, I can’t determine what is wrong.

· Question 11 is incorrect. The numbers for 2018 are right but the answer is wrong; in 2017 the total debt is wrong.

· Question 12 is incorrect Use all the numbers (796,223, not 796; 4,700,000 not 4.7).

· Question 13 is incorrect. Since you did not show your work, I can’t determine what is wrong.

· Question 14 is incorrect. How does Choice record these?

 

Cash Flow Statement

· Questions 2-7, 9-11, and 13-14 are correct, good job.

· Question 1 is incorrect. What was net income?

· Question 8 is incorrect. You need the other cash flows from debt included.

· Question 12 is incorrect. Look for cash at the beginning of the period ending 6/30

 

Here is the feedback for Step 2:

· The Ratios are incorrect, use the formulas on the page

· Question 1- See the article for more insight  https://corporatefinanceinstitute.com/resources/knowledge/finance/asset-management/

· Question 2: Correct as far as it goes, this site might help  https://www.myaccountingcourse.com/financial-ratios

· Question 3 is correct.

· Question 4: We are looking for a broader answer. In general, what makes the ratios change?

Here is the feedback for Step 3:

· The ratios are correct

· Question 1:

· See this article for more insight on asset management  https://corporatefinanceinstitute.com/resources/knowledge/finance/asset-management/

· Question 2: The answer misses some key elements which can be found on pg. 51, 54, and 90 of the 10-K

Let me know if you have any questions.

Thank you for your submission of Step 5 for Project 2. This submission does not meet the competency requirements for the project. Please correct the following items before resubmitting.

· The findings do not reflect the primary focus of the project – the financial analysis. It is important to incorporate a summary of all the analysis performed in steps 1-3 in your executive summary.

· The recommendations should be based on the analysis and need clarification:

· “Increasing the number of operational capacity by extending the franchises of hotels where CHH is on-line to increase the number of hotels and rooms.” What does this statement mean?

· “Early innovation can be effective to capture the clients and compete the industry” What kind of innovation?

· How can they pay off debt?

· There are no recommendations on reducing costs, or long-term debt.