a.
Income Statement Analysis:
Comecast
Verizon
Comment
Amount
% of Sales
Amount
% of Sales
Sales
$ 62,570
100.00%
$ 115,846
100.00%
Operating Costs
$ 50,391
80.54%
$ 102,686
88.64%
Operating Cost as compared to sales are high for Verizon
Operating Profits
$ 12,179
19.46%
$ 13,160
11.36%
Due to High Operating cost ratio, the Operating profits are lesser in case of Verizon
Non Operating Expenses
$ 5,976
9.55%
$ 2,603
2.25%
Non operating expenses are comparatively low in case of Verizon
Net Income
$ 6,203
9.91%
$ 10,557
9.11%
b.
Balance Sheet Analysis:
Comecast
Verizon
Comment
Amount
% of Sales
Amount
% of Sales
Current Assets
$ 19,991
31.95%
$ 21,235
18.33%
Current Assets are lower as compared to sales in case of Verizon
Long Term Assets
$ 144,980
231.71%
$ 203,987
176.08%
Long Term Assets are lower as compared to sales in case of Verizon
Total Assets
$ 164,971
263.66%
$ 225,222
194.41%
Total Assets are lower as compared to sales in case of Verizon
Current Liabilities
$ 16,714
26.71%
$ 26,956
23.27%
Long Term Liabilities
$ 98,461
157.36%
$ 112,733
97.31%
Long Term Liab are lower as compared to sales in case of Verizon
Total Liabilities
$ 115,175
184.07%
$ 139,689
120.58%
Stockholder\'s Equity
$ 49,796
79.58%
$ 85,533
73.83%
Total Liabilities and Equity
$ 164,971
263.66%
$ 225,222
194.41%
c.
Different capital structures create different level of risk for companies.
Companies having high debt and low Equity created a risky environment and on the opposite
hand
Companies having low debt and high Equity created a less risky environment.
a.
Income Statement Analysis:
Comecast
Verizon
Comment
Amount
% of Sales
Amount
% of Sales
Sales
$ 62,570
100.00%
$ 115,846
100.00%
Operating Costs
$ 50,391
80.54%
$ 102,686
88.64%
Operating Cost as compared to sales are high for Verizon
Operating Profits
$ 12,179
19.46%
$ 13,160
11.36%
Due to High Operating cost ratio, the Operating profits are lesser in case of Verizon
Non Operating Expenses
$ 5,976
9.55%
$ 2,603
2.25%
Non operating expenses are comparatively low in case of Verizon
Net Income
$ 6,203
9.91%
$ 10,557
9.11%
b.
Balance Sheet Analysis:
Comecast
Verizon
Comment
Amount
% of Sales
Amount
% of Sales
Current Assets
$ 19,991
31.95%
$ 21,235
18.33%
Current Assets are lower as compared to sales in case of Verizon
Long Term Assets
$ 144,980
231.71%
$ 203,987
176.08%
Long Term Assets are lower as compared to sales in case of Verizon
Total Assets
$ 164,971
263.66%
$ 225,222
194.41%
Total Assets are lower as compared to sales in case of Verizon
Current Liabilities
$ 16,714
26.71%
$ 26,956
23.27%
Long Term Liabilities
$ 98,461
157.36%
$ 112,733
97.31%
Long Term Liab are lower as compared to sales in case of Verizon
Total Liabilities
$ 115,175
184.07%
$ 139,689
120.58%
Stockholder\'s Equity
$ 49,796
79.58%
$ 85,533
73.83%
Total Liabilities and Equity
$ 164,971
263.66%
$ 225,222
194.41%
c.
Different capital structures create different level of risk for companies.
Companies having high debt and low Equity created a ris.
1. a.
Income Statement Analysis:
Comecast
Verizon
Comment
Amount
% of Sales
Amount
% of Sales
Sales
$ 62,570
100.00%
$ 115,846
100.00%
Operating Costs
$ 50,391
80.54%
$ 102,686
88.64%
Operating Cost as compared to sales are high for Verizon
Operating Profits
$ 12,179
19.46%
$ 13,160
11.36%
Due to High Operating cost ratio, the Operating profits are lesser in case of Verizon
Non Operating Expenses
$ 5,976
9.55%
$ 2,603
2.25%
Non operating expenses are comparatively low in case of Verizon
Net Income
$ 6,203
9.91%
2. $ 10,557
9.11%
b.
Balance Sheet Analysis:
Comecast
Verizon
Comment
Amount
% of Sales
Amount
% of Sales
Current Assets
$ 19,991
31.95%
$ 21,235
18.33%
Current Assets are lower as compared to sales in case of Verizon
Long Term Assets
$ 144,980
231.71%
$ 203,987
176.08%
Long Term Assets are lower as compared to sales in case of Verizon
Total Assets
$ 164,971
263.66%
$ 225,222
194.41%
Total Assets are lower as compared to sales in case of Verizon
Current Liabilities
$ 16,714
26.71%
$ 26,956
23.27%
Long Term Liabilities
$ 98,461
3. 157.36%
$ 112,733
97.31%
Long Term Liab are lower as compared to sales in case of Verizon
Total Liabilities
$ 115,175
184.07%
$ 139,689
120.58%
Stockholder's Equity
$ 49,796
79.58%
$ 85,533
73.83%
Total Liabilities and Equity
$ 164,971
263.66%
$ 225,222
194.41%
c.
Different capital structures create different level of risk for companies.
Companies having high debt and low Equity created a risky environment and on the opposite
hand
Companies having low debt and high Equity created a less risky environment.
a.
Income Statement Analysis:
Comecast
Verizon
Comment
Amount
% of Sales
Amount
% of Sales
Sales
$ 62,570
100.00%
4. $ 115,846
100.00%
Operating Costs
$ 50,391
80.54%
$ 102,686
88.64%
Operating Cost as compared to sales are high for Verizon
Operating Profits
$ 12,179
19.46%
$ 13,160
11.36%
Due to High Operating cost ratio, the Operating profits are lesser in case of Verizon
Non Operating Expenses
$ 5,976
9.55%
$ 2,603
2.25%
Non operating expenses are comparatively low in case of Verizon
Net Income
$ 6,203
9.91%
$ 10,557
9.11%
b.
Balance Sheet Analysis:
Comecast
Verizon
Comment
Amount
% of Sales
Amount
% of Sales
Current Assets
$ 19,991
5. 31.95%
$ 21,235
18.33%
Current Assets are lower as compared to sales in case of Verizon
Long Term Assets
$ 144,980
231.71%
$ 203,987
176.08%
Long Term Assets are lower as compared to sales in case of Verizon
Total Assets
$ 164,971
263.66%
$ 225,222
194.41%
Total Assets are lower as compared to sales in case of Verizon
Current Liabilities
$ 16,714
26.71%
$ 26,956
23.27%
Long Term Liabilities
$ 98,461
157.36%
$ 112,733
97.31%
Long Term Liab are lower as compared to sales in case of Verizon
Total Liabilities
$ 115,175
184.07%
$ 139,689
120.58%
Stockholder's Equity
$ 49,796
79.58%
$ 85,533
6. 73.83%
Total Liabilities and Equity
$ 164,971
263.66%
$ 225,222
194.41%
c.
Different capital structures create different level of risk for companies.
Companies having high debt and low Equity created a risky environment and on the opposite
hand
Companies having low debt and high Equity created a less risky environment.
Solution
a.
Income Statement Analysis:
Comecast
Verizon
Comment
Amount
% of Sales
Amount
% of Sales
Sales
$ 62,570
100.00%
$ 115,846
100.00%
Operating Costs
$ 50,391
80.54%
$ 102,686
88.64%
Operating Cost as compared to sales are high for Verizon
Operating Profits
$ 12,179
7. 19.46%
$ 13,160
11.36%
Due to High Operating cost ratio, the Operating profits are lesser in case of Verizon
Non Operating Expenses
$ 5,976
9.55%
$ 2,603
2.25%
Non operating expenses are comparatively low in case of Verizon
Net Income
$ 6,203
9.91%
$ 10,557
9.11%
b.
Balance Sheet Analysis:
Comecast
Verizon
Comment
Amount
% of Sales
Amount
% of Sales
Current Assets
$ 19,991
31.95%
$ 21,235
18.33%
Current Assets are lower as compared to sales in case of Verizon
Long Term Assets
$ 144,980
231.71%
$ 203,987
176.08%
Long Term Assets are lower as compared to sales in case of Verizon
8. Total Assets
$ 164,971
263.66%
$ 225,222
194.41%
Total Assets are lower as compared to sales in case of Verizon
Current Liabilities
$ 16,714
26.71%
$ 26,956
23.27%
Long Term Liabilities
$ 98,461
157.36%
$ 112,733
97.31%
Long Term Liab are lower as compared to sales in case of Verizon
Total Liabilities
$ 115,175
184.07%
$ 139,689
120.58%
Stockholder's Equity
$ 49,796
79.58%
$ 85,533
73.83%
Total Liabilities and Equity
$ 164,971
263.66%
$ 225,222
194.41%
c.
Different capital structures create different level of risk for companies.
Companies having high debt and low Equity created a risky environment and on the opposite
hand
9. Companies having low debt and high Equity created a less risky environment.
a.
Income Statement Analysis:
Comecast
Verizon
Comment
Amount
% of Sales
Amount
% of Sales
Sales
$ 62,570
100.00%
$ 115,846
100.00%
Operating Costs
$ 50,391
80.54%
$ 102,686
88.64%
Operating Cost as compared to sales are high for Verizon
Operating Profits
$ 12,179
19.46%
$ 13,160
11.36%
Due to High Operating cost ratio, the Operating profits are lesser in case of Verizon
Non Operating Expenses
$ 5,976
9.55%
$ 2,603
2.25%
Non operating expenses are comparatively low in case of Verizon
Net Income
$ 6,203
9.91%
10. $ 10,557
9.11%
b.
Balance Sheet Analysis:
Comecast
Verizon
Comment
Amount
% of Sales
Amount
% of Sales
Current Assets
$ 19,991
31.95%
$ 21,235
18.33%
Current Assets are lower as compared to sales in case of Verizon
Long Term Assets
$ 144,980
231.71%
$ 203,987
176.08%
Long Term Assets are lower as compared to sales in case of Verizon
Total Assets
$ 164,971
263.66%
$ 225,222
194.41%
Total Assets are lower as compared to sales in case of Verizon
Current Liabilities
$ 16,714
26.71%
$ 26,956
23.27%
Long Term Liabilities
$ 98,461
11. 157.36%
$ 112,733
97.31%
Long Term Liab are lower as compared to sales in case of Verizon
Total Liabilities
$ 115,175
184.07%
$ 139,689
120.58%
Stockholder's Equity
$ 49,796
79.58%
$ 85,533
73.83%
Total Liabilities and Equity
$ 164,971
263.66%
$ 225,222
194.41%
c.
Different capital structures create different level of risk for companies.
Companies having high debt and low Equity created a risky environment and on the opposite
hand
Companies having low debt and high Equity created a less risky environment.