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
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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
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 |
| 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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