Following are selected income statement and balance sheet data for two communications companies: Comcast and Verizon, for the year ended December 31, 2012.

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Income Statement ($ millions) Comcast Verizon Sales.. $94,507 $130,863 Operating costs 75,498 108,585 Operating profit.. 19,009 22,278 Nonoperating expenses 7,147 6,239 Net income. $11,862 $ 16,039 Balance Sheet ($ millions) Current assets Long-term assets Comcast $ 21,848 229,836 Verizon Total assets $251,684 Current liabilities. $ 27,603 Long-term liabilities.. 151,579 $ 34,636 230,193 $264,829 $ 37,930 172,189 Total liabilities.. 179,182 210,119 Stockholders' equity* Total liabilities and equity. 72,502 54,710 $251,684 $264,829 *Includes noncontrolling interest E2-44. a. Express each income statement amount as a percentage of sales. Comment on any differences ob- served between the two companies. b. Express each balance sheet amount as a percentage of total assets. Comment on any differences ob- served between the two companies, especially as they relate to their respective business models. c. Both Verizon and Comcast have chosen a capital structure with a higher proportion of liabilities than equity. How does this capital structure decision affect our evaluation of the riskiness of these two companies? Take into consideration the large level of capital expenditures that each must make to remain competitive. Compare Financial Information Across Industries Income Statement ($ millions) Comcast Verizon Sales.. $94,507 $130,863 Operating costs 75,498 108,585 Operating profit.. 19,009 22,278 Nonoperating expenses 7,147 6,239 Net income. $11,862 $ 16,039 Balance Sheet ($ millions) Current assets Long-term assets Comcast $ 21,848 229,836 Verizon Total assets $251,684 Current liabilities. $ 27,603 Long-term liabilities.. 151,579 $ 34,636 230,193 $264,829 $ 37,930 172,189 Total liabilities.. 179,182 210,119 Stockholders' equity* Total liabilities and equity. 72,502 54,710 $251,684 $264,829 *Includes noncontrolling interest E2-44. a. Express each income statement amount as a percentage of sales. Comment on any differences ob- served between the two companies. b. Express each balance sheet amount as a percentage of total assets. Comment on any differences ob- served between the two companies, especially as they relate to their respective business models. c. Both Verizon and Comcast have chosen a capital structure with a higher proportion of liabilities than equity. How does this capital structure decision affect our evaluation of the riskiness of these two companies? Take into consideration the large level of capital expenditures that each must make to remain competitive. Compare Financial Information Across Industries

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Answer Lets tackle each part of the question step by step a Expressing each income statement amount as a percentage of sales For Comcast Operating cos... View the full answer