I wanted to meet today about assigning you a corporate accounting project. It is necessary to understand the client’s accounting and strategy before we can consider recommendations. Choice Hotels’ accounting is audited by Ernst & Young LLP. This same firm audits their internal controls. As a result of the Sarbanes-Oxley Act of 2002 (SOX), Choice Hotels must rely on a different firm for accounting advice, and it will likely use one of the other big four accounting firms. I am handing down this assignment from our managing director, Elisa Izuki, who heads the accounting projects group in Maryland Creative Solutions, LLC (MCS). She has asked for a complete review and ratio analysis of the most recent 10-K annual financial statements for Choice Hotels International, Inc. “Speaking of financial statements,” Frank adds, “the most common financial statements are the income statement, balance sheet, and statement of cash flows. While you are at it, you should know a bit about accounting conventions and standards in the United States.”

 Instructions
Dialogue with Frank Marinara
“I wanted to meet today about assigning you a corporate accounting project. It is necessary to understand the client’s accounting and strategy before we can consider recommendations.
Choice Hotels’ accounting is audited by Ernst & Young LLP. This same firm audits their internal controls. As a result of the Sarbanes-Oxley Act of 2002 (SOX), Choice Hotels must rely on a different firm for accounting advice, and it will likely use one of the other big four accounting firms.
I am handing down this assignment from our managing director, Elisa Izuki, who heads the accounting projects group in Maryland Creative Solutions, LLC (MCS). She has asked for a complete review and ratio analysis of the most recent 10-K annual financial statements for Choice Hotels International, Inc.
“Speaking of financial statements,” Frank adds, “the most common financial statements are the income statement, balance sheet, and statement of cash flows. While you are at it, you should know a bit about accounting conventions and standards in the United States.”
Your goal is to develop an understanding of the business of Choice Hotels using the 2018 annual report that the company files with the Securities and Exchange Commission (10-K). I recommend you analyze the 10-K financial reports using accounting and finance ratios after you read key parts of the Document.
Ratio analysis is especially difficult because Choice Hotels is one of the largest hotel franchisors in the world. The company does not sell any products and has no inventory, and because of this, some traditional analyses does not apply.
Also, the company has had and continues to have an aggressive Treasury stock repurchase program, and this has caused negative equity on the balance sheet. Many companies have had stock repurchase programs in recent history. Choice Hotels has been among the most aggressive in Treasury stock repurchase programs. The negative equity means that we cannot use ratios like Return on Equity and Debt to Equity. Fortunately, there are other ratios we can use.
Choice Hotels’ management recently completed a large acquisition. You need to understand what was acquired.
The first part of the 10-K Document has useful information that describes the business, the risk factors, and Management’s Discussion and Analysis of Financial Condition and Results of Operations. This information is beneficial to your analysis.
Analysts use the Notes to Consolidated Financial Statements in the 10-K Document to evaluate the riskiness of the debt. The notes also state that Choice Hotels has an investment grade credit rating. However, the interest rates seem high compared to our other clients. Both Standard & Poor’s and Moody’s rate Choice Hotels’ debt as the lowest investment grade BBB- and Baa3 with a stable outlook.

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How Our Website Works

1. FILL IN OUR SIMPLE ORDER FORM

It has never been easier to place your order. Fill in the initial requirements in the small order form located on the home page and press “continue” button to proceed to the main order form or press “order” button in the header menu. Starting from there let our system intuitively guide you through all steps of ordering process.

2. PROCEED WITH THE PAYMENT

All your payments are processed securely through PayPal. This enables us to guarantee a 100% security of your funds and process payments swiftly.

3. WRITER ASSIGNMENT

Next, we match up your order details with the most qualified freelance writer in your field.

4. WRITING PROCESS

Once we have found the most suitable writer for your assignment, they start working on a masterpiece just for you!

5. DELIVERY

Once finished, your final paper will be available for download through your personal dashboard. You will also receive an email notification with a copy of your paper attached to it. Sometimes, the writer may leave a note for you about the order in case there is any additional information that they need to give you.

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