Instructions 2027 rounding to one decimal place, except per- Determine the following measures for share amounts,...

Transcribed Image Text:

Instructions 2027 rounding to one decimal place, except per- Determine the following measures for share amounts, which should be rounded to the nearest penny: 1. Working capital 2. Current ratio 3. Quick ratio 4. Accounts receivable turnover 5. Number of days' sales in receivables 6. Inventory turnover 7. Number of days' sales in inventory 8. Ratio of fixed assets to long-term liabilities 9. Ratio of liabilities to stockholders' equity Answer 10. Number of times interest charges are earned 11. Number of times preferred dividends are earned 12. Ratio of sales to assets 13. Rate earned on total assets 14. Rate earned on stockholders' equity 15. Rate earned on common stockholders' equity 16. Earnings per share on common stock 17. Price-earnings ratio 18. Dividends per share of common stock 19. Dividend yield Consolidated Statements of Changes in Equity Verizon Communications Inc. and Subsidiaries (dollars in millions, except per share amounts, and shares in thousands) Years Ended December 31, Common Stock Balance at beginning of year Balance at end of year Additional Paid In Capital Balance at beginning of year Other (Note 14) Balance at end of year Retained Earnings Balance at beginning of year Opening balance sheet adjustment (Note 1) Adjusted opening balance Net income attributable to Verizon Dividends declared ($2.585, $2.535, $2.485 per share) Other Balance at end of year Accumulated Other Comprehensive Income (Loss) Balance at beginning of year attributable to Verizon Foreign currency translation adjustments Unrealized gain (loss) on cash flow hedges Unrealized loss on fair value hedges Unrealized loss on marketable securities Defined benefit pension and postretirement plans Other comprehensive loss Balance at end of year attributable to Verizon Treasury Stock Balance at beginning of year Employee plans (Note 14) Shareholder plans (Note 14) Acquisitions (Note 3) Balance at end of year Deferred Compensation-ESOPs and Other Balance at beginning of year Restricted stock equity grant Amortization Balance at end of year Noncontrolling Interests Balance at beginning of year Total comprehensive income Distributions and other (Note 14) Balance at end of year Total Equity Shares 2022 Amount 2021 Shares Amount 2020 Shares Amount 4,291,434 $ 429 4,291,434 $ 4,291,434 429 4,291,434 429 4,291,434 $ 429 429 4,291,434 429 13,861 13,404 13,419 (441) 457 (15) 13,420 13,861 13,404 71,993 60,464 53,147 (200) 71,993 60,464 52,947 21,256 22,065 17,801 (10,860) (10,532) (10,284) (9) (4) 82,380 71,993 60,464 (927) (71) 998 (153) (141) 180 322 (85) (571) (431) (25) (9) (2) (651) (621) (676) (938) (856) (1,069) (1,865) (927) (71) (93,635) 2,048 (4,104) (153,304) (6,719) (155,606) (6,820) 15 90 1 2,057 90 2,298 101 (91,572) (4,013) 15 57,597 (93,635) 1 2,524 (4,104) (153,304) (6,719) 538 335 222 423 369 275 (168) (166) (162) 793 538 335 1,410 1,430 1,440 492 553 547 (583) 1,319 (573) (557) 1,410 1,430 $ 92,463 $ 83,200 $ 69,272 See Notes to Consolidated Financial Statements Consolidated Balance Sheets Verizon Communications Inc. and Subsidiaries At December 31, Assets Current assets Cash and cash equivalents Accounts receivable Less Allowance for credit losses Accounts receivable, net Inventories Prepaid expenses and other Total current assets Property, plant and equipment Less Accumulated depreciation Property, plant and equipment, net Investments in unconsolidated businesses Wireless licenses Goodwill Other intangible assets, net Operating lease right-of-use assets Other assets Total assets (dollars in millions, except per share amounts) 2022 2021 2,605 2,921 25,332 24,742 826 896 24,506 23,846 2,388 3,055 8,358 6,906 37,857 36,728 307,689 289,897 200,255 190,201 107,434 99,696 1,071 1,061 149,796 147,619 28,671 28,603 11,461 11,677 26,130 27,883 17,260 13,329 $ 379,680 $ 366,596 Liabilities and Equity Current liabilities Debt maturing within one year $ 9,963 $ 7,443 Accounts payable and accrued liabilities 23,977 24,833 Current operating lease liabilities 4,134 3,859 Other current liabilities 12,097 11,025 Total current liabilities 50,171 47,160 Long-term debt Employee benefit obligations Deferred income taxes Non-current operating lease liabilities Other liabilities 140,676 143,425 12,974 15,410 43,441 40,685 21,558 23,203 18,397 13,513 237,046 236,236 Total long-term liabilities Commitments and Contingencies (Note 16) Equity Series preferred stock ($0.10 par value; 250,000,000 shares authorized; none issued) Common stock ($0.10 par value; 6,250,000,000 shares authorized in each period; 4,291,433,646 shares issued in each period) 429 Additional paid in capital 13,420 429 13,861 Retained earnings 82,380 71,993 Accumulated other comprehensive loss (1,865) (927) Common stock in treasury, at cost (91,572,258 and 93,634,725 shares outstanding) Deferred compensation - employee stock ownership plans (ESOPs) and other (4,013) (4,104) 793 538 Noncontrolling interests 1,319 1,410 Total equity 92,463 83,200 Total liabilities and equity $ 379,680 $ 366,596 See Notes to Consolidated Financial Statements Consolidated Statements of Income Verizon Communications Inc. and Subsidiaries Years Ended December 31, Operating Revenues Service revenues and other Wireless equipment revenues Total Operating Revenues Operating Expenses Cost of services (exclusive of items shown below) Cost of wireless equipment Selling, general and administrative expense Depreciation and amortization expense (dollars in millions, except per share amounts) 2022 2021 2020 $ 109,625 $ 110,449 $ 109,872 27,210 23,164 18,420 136,835 133,613 128,292 28,637 31,234 31,401 30,496 25,067 19,800 30,136 28,658 31,573 17,099 16,206 16,720 Total Operating Expenses 106,368 101,165 99,494 Operating Income 30,467 32,448 28,798 Equity in earnings (losses) of unconsolidated businesses 44 145 (45) Other income (expense), net 1,373 312 (539) Interest expense (3,613) (3,485) (4,247) Income Before Provision For Income Taxes 28,271 29,420 23,967 Provision for income taxes (6,523) (6,802) (5,619) Net Income $ 21,748 $ 22,618 $ 18,348 Net income attributable to noncontrolling interests $ 492 $ 553 $ 547 Net income attributable to Verizon 21,256 22,065 17,801 Net Income $ 21,748 $ 22,618 $ 18,348 Basic Earnings Per Common Share Net income attributable to Verizon Weighted-average shares outstanding (in millions) 5.06 $ 4,202 5.32 $ 4.30 4,148 4,140 Diluted Earnings Per Common Share Net income attributable to Verizon Weighted-average shares outstanding (in millions) See Notes to Consolidated Financial Statements 5.06 $ 4,204 5.32 $ 4,150 4.30 4,142 Instructions 2027 rounding to one decimal place, except per- Determine the following measures for share amounts, which should be rounded to the nearest penny: 1. Working capital 2. Current ratio 3. Quick ratio 4. Accounts receivable turnover 5. Number of days' sales in receivables 6. Inventory turnover 7. Number of days' sales in inventory 8. Ratio of fixed assets to long-term liabilities 9. Ratio of liabilities to stockholders' equity Answer 10. Number of times interest charges are earned 11. Number of times preferred dividends are earned 12. Ratio of sales to assets 13. Rate earned on total assets 14. Rate earned on stockholders' equity 15. Rate earned on common stockholders' equity 16. Earnings per share on common stock 17. Price-earnings ratio 18. Dividends per share of common stock 19. Dividend yield Consolidated Statements of Changes in Equity Verizon Communications Inc. and Subsidiaries (dollars in millions, except per share amounts, and shares in thousands) Years Ended December 31, Common Stock Balance at beginning of year Balance at end of year Additional Paid In Capital Balance at beginning of year Other (Note 14) Balance at end of year Retained Earnings Balance at beginning of year Opening balance sheet adjustment (Note 1) Adjusted opening balance Net income attributable to Verizon Dividends declared ($2.585, $2.535, $2.485 per share) Other Balance at end of year Accumulated Other Comprehensive Income (Loss) Balance at beginning of year attributable to Verizon Foreign currency translation adjustments Unrealized gain (loss) on cash flow hedges Unrealized loss on fair value hedges Unrealized loss on marketable securities Defined benefit pension and postretirement plans Other comprehensive loss Balance at end of year attributable to Verizon Treasury Stock Balance at beginning of year Employee plans (Note 14) Shareholder plans (Note 14) Acquisitions (Note 3) Balance at end of year Deferred Compensation-ESOPs and Other Balance at beginning of year Restricted stock equity grant Amortization Balance at end of year Noncontrolling Interests Balance at beginning of year Total comprehensive income Distributions and other (Note 14) Balance at end of year Total Equity Shares 2022 Amount 2021 Shares Amount 2020 Shares Amount 4,291,434 $ 429 4,291,434 $ 4,291,434 429 4,291,434 429 4,291,434 $ 429 429 4,291,434 429 13,861 13,404 13,419 (441) 457 (15) 13,420 13,861 13,404 71,993 60,464 53,147 (200) 71,993 60,464 52,947 21,256 22,065 17,801 (10,860) (10,532) (10,284) (9) (4) 82,380 71,993 60,464 (927) (71) 998 (153) (141) 180 322 (85) (571) (431) (25) (9) (2) (651) (621) (676) (938) (856) (1,069) (1,865) (927) (71) (93,635) 2,048 (4,104) (153,304) (6,719) (155,606) (6,820) 15 90 1 2,057 90 2,298 101 (91,572) (4,013) 15 57,597 (93,635) 1 2,524 (4,104) (153,304) (6,719) 538 335 222 423 369 275 (168) (166) (162) 793 538 335 1,410 1,430 1,440 492 553 547 (583) 1,319 (573) (557) 1,410 1,430 $ 92,463 $ 83,200 $ 69,272 See Notes to Consolidated Financial Statements Consolidated Balance Sheets Verizon Communications Inc. and Subsidiaries At December 31, Assets Current assets Cash and cash equivalents Accounts receivable Less Allowance for credit losses Accounts receivable, net Inventories Prepaid expenses and other Total current assets Property, plant and equipment Less Accumulated depreciation Property, plant and equipment, net Investments in unconsolidated businesses Wireless licenses Goodwill Other intangible assets, net Operating lease right-of-use assets Other assets Total assets (dollars in millions, except per share amounts) 2022 2021 2,605 2,921 25,332 24,742 826 896 24,506 23,846 2,388 3,055 8,358 6,906 37,857 36,728 307,689 289,897 200,255 190,201 107,434 99,696 1,071 1,061 149,796 147,619 28,671 28,603 11,461 11,677 26,130 27,883 17,260 13,329 $ 379,680 $ 366,596 Liabilities and Equity Current liabilities Debt maturing within one year $ 9,963 $ 7,443 Accounts payable and accrued liabilities 23,977 24,833 Current operating lease liabilities 4,134 3,859 Other current liabilities 12,097 11,025 Total current liabilities 50,171 47,160 Long-term debt Employee benefit obligations Deferred income taxes Non-current operating lease liabilities Other liabilities 140,676 143,425 12,974 15,410 43,441 40,685 21,558 23,203 18,397 13,513 237,046 236,236 Total long-term liabilities Commitments and Contingencies (Note 16) Equity Series preferred stock ($0.10 par value; 250,000,000 shares authorized; none issued) Common stock ($0.10 par value; 6,250,000,000 shares authorized in each period; 4,291,433,646 shares issued in each period) 429 Additional paid in capital 13,420 429 13,861 Retained earnings 82,380 71,993 Accumulated other comprehensive loss (1,865) (927) Common stock in treasury, at cost (91,572,258 and 93,634,725 shares outstanding) Deferred compensation - employee stock ownership plans (ESOPs) and other (4,013) (4,104) 793 538 Noncontrolling interests 1,319 1,410 Total equity 92,463 83,200 Total liabilities and equity $ 379,680 $ 366,596 See Notes to Consolidated Financial Statements Consolidated Statements of Income Verizon Communications Inc. and Subsidiaries Years Ended December 31, Operating Revenues Service revenues and other Wireless equipment revenues Total Operating Revenues Operating Expenses Cost of services (exclusive of items shown below) Cost of wireless equipment Selling, general and administrative expense Depreciation and amortization expense (dollars in millions, except per share amounts) 2022 2021 2020 $ 109,625 $ 110,449 $ 109,872 27,210 23,164 18,420 136,835 133,613 128,292 28,637 31,234 31,401 30,496 25,067 19,800 30,136 28,658 31,573 17,099 16,206 16,720 Total Operating Expenses 106,368 101,165 99,494 Operating Income 30,467 32,448 28,798 Equity in earnings (losses) of unconsolidated businesses 44 145 (45) Other income (expense), net 1,373 312 (539) Interest expense (3,613) (3,485) (4,247) Income Before Provision For Income Taxes 28,271 29,420 23,967 Provision for income taxes (6,523) (6,802) (5,619) Net Income $ 21,748 $ 22,618 $ 18,348 Net income attributable to noncontrolling interests $ 492 $ 553 $ 547 Net income attributable to Verizon 21,256 22,065 17,801 Net Income $ 21,748 $ 22,618 $ 18,348 Basic Earnings Per Common Share Net income attributable to Verizon Weighted-average shares outstanding (in millions) 5.06 $ 4,202 5.32 $ 4.30 4,148 4,140 Diluted Earnings Per Common Share Net income attributable to Verizon Weighted-average shares outstanding (in millions) See Notes to Consolidated Financial Statements 5.06 $ 4,204 5.32 $ 4,150 4.30 4,142