The following income statement data for AT&T Inc. and Verizon Communications Inc. were taken from their recent annual reports (in millions): AT&T Verizon Revenues.. $132,447 $127,079 Cost of services (expense).. 60,611 49,931 Selling and marketing expense . Depreciation and other expenses Operating income 39,697 41,016 20,393 16,533 $ 11,746 $ 19,599 a. Prepare a vertical analysis of the income statement for AT&T. Round to one decimal place. b. Prepare a vertical analysis of the income statement for Verizon. Round to one decimal place. Based on Requirements (a) and (b), how does AT&T compare to Verizon? c.

Financial Accounting
15th Edition
ISBN:9781337272124
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter3: The Adjusting Process
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Problem 30E
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The following income statement data for AT&T Inc. and Verizon Communications Inc. were
taken from their recent annual reports (in millions):
AT&T
Verizon
Revenues..
$132,447
$127,079
Cost of services (expense)..
60,611
49,931
Selling and marketing expense .
Depreciation and other expenses
Operating income
39,697
41,016
20,393
16,533
$ 11,746
$ 19,599
a. Prepare a vertical analysis of the income statement for AT&T. Round to one decimal
place.
b. Prepare a vertical analysis of the income statement for Verizon. Round to one decimal
place.
Based on Requirements (a) and (b), how does AT&T compare to Verizon?
c.
Transcribed Image Text:The following income statement data for AT&T Inc. and Verizon Communications Inc. were taken from their recent annual reports (in millions): AT&T Verizon Revenues.. $132,447 $127,079 Cost of services (expense).. 60,611 49,931 Selling and marketing expense . Depreciation and other expenses Operating income 39,697 41,016 20,393 16,533 $ 11,746 $ 19,599 a. Prepare a vertical analysis of the income statement for AT&T. Round to one decimal place. b. Prepare a vertical analysis of the income statement for Verizon. Round to one decimal place. Based on Requirements (a) and (b), how does AT&T compare to Verizon? c.
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