Conduct a financial statement analysis of Verizon Communication Inc Cost structure.

Expert Solution

ANS: financial statement analysis of Verizon Communication Inc

Income Statement

The income statement (statement of earnings) reports on the performance of Verizon Communications Inc., the result of its operating activities

Statement of Comprehensive Income

Comprehensive income is the change in equity (net assets) of Verizon Communications Inc. during a period from transactions and other events and circumstances from non-owners sources. It includes all changes in equity during a period except those resulting from investments by owners and distributions to owners.

Cash Flow Statement

The cash flow statement provides information about Verizon Communications Inc.’s cash receipts and cash payments during an accounting period, showing how these cash flows link the ending cash balance to the beginning balance shown on Verizon Communications Inc.’s balance sheet.

Verizon Communications Inc., consolidated balance sheet: assets

	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015
Cash and cash equivalents	2,594	2,745	2,079	2,880	4,470
Short-term investments	—	—	—	—	350
Accounts receivable, net of allowances	25,429	25,102	23,493	17,513	13,457
Inventories	1,422	1,336	1,034	1,202	1,252
Assets held for sale	—	—	—	882	792
Prepaid taxes	2,438	348	—	—	—
Deferred contract costs	2,578	2,083	—	—	—
Restricted cash	1,221	1,047	—	—	—
Other prepaid expense and other	1,791	1,975	3,307	3,918	1,959
Prepaid expenses and other	8,028	5,453	3,307	3,918	1,959
Current assets	37,473	34,636	29,913	26,395	22,280
Plant, property and equipment, net	91,915	89,286	88,568	84,751	83,541
Investments in unconsolidated businesses	558	671	1,039	1,110	796
Goodwill	24,389	24,614	29,172	27,205	25,331
Wireless licenses	95,059	94,130	88,417	86,673	86,575
Other intangible assets, net	9,498	9,775	10,247	8,897	8,338
Intangible assets, net	104,557	103,905	98,664	95,570	94,913
Operating lease right-of-use assets	22,694	—	—	—	—
Non-current assets held for sale	—	—	—	613	10,267
Other assets	10,141	11,717	9,787	8,536	7,512
Non-current assets	254,254	230,193	227,230	217,785	222,360
Total assets	291,727	264,829	257,143	244,180

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