he 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 39,697 41,016 Depreciation and other expenses 20,393 16,533 Operating income $ 11,746 $ 19,599 Required: a. Prepare a vertical analysis of the income statement for AT&T. Round to one decimal place. AT&T Income Statement     Amount Percent Revenues     Cost of services (expense)     Selling and marketing expense     Depreciation and other expenses     Operating income     b. Prepare a vertical analysis of the income statement for Verizon. Round to one decimal place. Verizon Income Statement     Amount Percent Revenues     Cost of services (expense)     Selling and marketing expense     Depreciation and other expenses     Operating income

Corporate Financial Accounting
14th Edition
ISBN:9781305653535
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter3: The Adjusting Process
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Vertical analysis

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 39,697 41,016
Depreciation and other expenses 20,393 16,533
Operating income $ 11,746 $ 19,599

Required:

a. Prepare a vertical analysis of the income statement for AT&T. Round to one decimal place.

AT&T
Income Statement
 
  Amount Percent
Revenues    
Cost of services (expense)    
Selling and marketing expense    
Depreciation and other expenses    
Operating income    

b. Prepare a vertical analysis of the income statement for Verizon. Round to one decimal place.

Verizon
Income Statement
 
  Amount Percent
Revenues    
Cost of services (expense)    
Selling and marketing expense    
Depreciation and other expenses    
Operating income    
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