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Balance Sheet:

1. Based on your horizontal analysis of Choice Hotels' and Marriott International's total assets, total liabilities, and total equity, which company is most attractive for an acquisition by the equity firm and why?

2. What advice would you give to the client, Choice Hotels, to reduce its total liabilities?

Account name ASSETS Current assets Cash and equivalents Accounts and notes receivable, net Prepaid expenses and other Assets held for sale Assets, current, total Property and equipment, net 2017 2016 (2017/2016)-1 Percent change from 2016 to 2017 MAR 2017 10-K Report MAR 2016 10-K Report 383.00 S 991.00$ 224.00 S 149.00 858.00 1,695.00 230.00 588.00 3,371.00 2,335.00 17% 39% 2,747.00 1,793.00 8,805.00 $ 9,207.00 -5% 21% Intangible assets 9,270.00 Goodwill and intangible assets, net, total 18,012.00 $ 16,868.00 Equity and cost method investments 728.00 Notes receivable, net Deferred tax assets Other noncurrent assets Total assets 42.00 93.00 $ 42100 S 245.00 116.00 477.00 24,140.00 23,948.00 LIABILITIES AND SHAREHOLDERS EQUITY MAR 2017 10-K Report MAR 2016 10-K Report Percent change from 2016 to 2017 Current liabilities Current portion of long-term debt 398.00 309.00 Accounts payable Accrued payroll and benefits Liability for guest loyalty programs Accrued expenses and other Liabilities, current, total 780.00 $ 1,227.00 $ 2,064.00 1,541.00$ ,010.00 $ 14% 687.00 1,174.00 11% 1,111.00 5,147.00 Long-term debt ,840.00 $ 8,197.00 Liability for guest loyalty programs Deferred tax liabilities Other noncurrent iabilities 2,876.00$ 604.00 S 2,887.00 1,020.00 Sharehol ders' equity Class A Common Stock Additional paid-in-capital Retained earnings Treasury stock, at cost 5,770.00 $ 7,391.00 $ (9,418.00) 6,501.00 14% Accumulated other comprehensive loss Stockholders' deficit Liabilities and deficit, total 17.00)$ ,731.00$ 23,948.00$ (497.00) 5,357.00 24,140.00

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