The following income statement data for A T&T Inc. and Verizon Communications Inc. were taken from their recent annual reports (in millions):
_____________________________ T&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
c. Prepare a vertical analysis of the income statement for AT&T. (Round to one decimal place.)
b. Prepare a vertical analysis of the income statement for Verizon. (Round to one decimal place.)
c. Based on Requirements A and B, how does AT&T compare to Verizon?