Before spinning off its businesses in 2006, Cendant Corporation owned and operated Super 8 Motels, Ramada, Howard

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Before spinning off its businesses in 2006, Cendant Corporation owned and operated Super 8 Motels, Ramada, Howard Johnson, Century 21, Orbitz.com, Avis, and Budget. Cendant also was notorious for committing a $3.3 billion accounting fraud in the late 1990s, which sent its former vice-chairman to prison for ten years. Assume that on February 13, 2014, the company issued a press release that reported the following amounts (in millions) for the year just ended on December 31, 2013:
2012 2013 $18,236 869 1,341 Total Fee Revenue Income from Operations $16,689 1,365 2,082 Net Income

Required
Compute the net profit margin ratio for the current and prior years. What do these analyses indicate?

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
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Related Book For  book-img-for-question

Fundamentals of Financial Accounting

ISBN: 978-1259103292

4th Canadian edition

Authors: Fred Phillips, Robert Libby, Patricia Libby, Brandy Mackintosh

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