Bundle: Financial & Managerial Accounting, Loose-Leaf Version, 14th + CengageNOWv2, 2 terms Printed Access Card
14th Edition
ISBN: 9781337591010
Author: Carl Warren, James M. Reeve, Jonathan Duchac
Publisher: Cengage Learning
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Textbook Question
Chapter 11, Problem 4ADM
Hilton and Marriott: Times interest earned
Hilton Worldwide Holdings, Inc. and Marriott International, Inc. are two of the largest hotel operators in the world. Selected financial information from recent income statements for both companies follows (in millions):
| Hilton | Marriott | |
| Operating income | $1,673 | $1,159 |
| Interest expense | 618 | 115 |
| Other expense items | 92 | 44 |
| Income before income taxes | $1,147 | $1,088 |
| Income tax expense | 465 | 335 |
| Net income | $ 682 | $ 753 |
A. Compute the times interest earned ratio for each company. (Round to one decimal place.)
B. Which company appears to better protect creditor interest? Why?
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Paceheco Corporation uses the weighted average method in its
process costing system. The Molding Department is the second
department in its production process. The data below summarize the
department's operations in January.
Percent Complete
Units
with Respect to
Conversion
Beginning work in process
6,000
70%
inventory
Transferred in from the prior
59,900
department during January
Completed and transferred to the
57,700
next department during January
Ending work in process inventory
8,200
40%
The accounting records indicate that the conversion cost that had been
assigned to beginning work in process inventory was $35,458 and a
total of $560,154 in conversion costs were incurred in the department
during January.
The cost per equivalent unit for conversion costs for January in the
Molding Department is:
A. $9.623
B. $9.767
C. $9.824
D. $8.579
Chapter 11 Solutions
Bundle: Financial & Managerial Accounting, Loose-Leaf Version, 14th + CengageNOWv2, 2 terms Printed Access Card
Ch. 11 - Describe the two distinct obligations incurred by...Ch. 11 - Explain the meaning of each of the following terms...Ch. 11 - Prob. 3DQCh. 11 - A corporation issues 26,000,000 of 9% bonds to...Ch. 11 - Prob. 5DQCh. 11 - The following data relate to a 2,000,000, 8% bond...Ch. 11 - Prob. 7DQCh. 11 - Fleeson Company needs additional funds to purchase...Ch. 11 - Prob. 9DQCh. 11 - Issuing bonds at face amount On January 1, the...
Ch. 11 - Issuing bonds at a discount On the first day of...Ch. 11 - Prob. 11.3BECh. 11 - Prob. 11.4BECh. 11 - Prob. 11.5BECh. 11 - Prob. 11.6BECh. 11 - Bond price United States Steel Corporations 7.5%...Ch. 11 - Entries for issuing bonds Thomson Co. produces and...Ch. 11 - Prob. 11.3EXCh. 11 - Prob. 11.4EXCh. 11 - Entries for issuing and calling bonds; loss Hoover...Ch. 11 - Entries for issuing and calling bonds; gain Mia...Ch. 11 - Prob. 11.7EXCh. 11 - Prob. 11.8EXCh. 11 - Present value of an annuity Determine the present...Ch. 11 - Present value of an annuity On January 1 you win...Ch. 11 - Prob. 11.11EXCh. 11 - Prob. 11.12EXCh. 11 - Present value of bonds payable; premium Moss Co....Ch. 11 - Amortize discount by interest method On the first...Ch. 11 - Amortize premium by interest method Shunda...Ch. 11 - Prob. 11.16EXCh. 11 - Prob. 11.17EXCh. 11 - Bond discount, entries for bonds payable...Ch. 11 - Prob. 11.2APRCh. 11 - Entries for bonds payable, including bond...Ch. 11 - Bond discount, entries for bonds payable...Ch. 11 - Prob. 11.5APRCh. 11 - Bond discount, entries for bonds payable...Ch. 11 - Prob. 11.2BPRCh. 11 - Entries for bonds payable, including bond...Ch. 11 - Bond discount, entries for bonds payable...Ch. 11 - Prob. 11.5BPRCh. 11 - Prob. 1ADMCh. 11 - Prob. 2ADMCh. 11 - Prob. 3ADMCh. 11 - Hilton and Marriott: Times interest earned Hilton...Ch. 11 - Prob. 11.1TIFCh. 11 - Prob. 11.3TIF
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