E2-43.Compare Income Statements and Balance Sheets of Competitors Following are selected income statement and balance sheet data for two communications companies, Comcast and Verizon, for the year ended December 3 1, 2018.

Income Statement ($ millions)
Sales .......................... .
Operating costs ...... • .. • ....... •
Operating profit. ......... • .. . ....•
Nonoperating expenses ... • .......•
Net income ... . ......... . . . ..... .
Balance Sheet ($ millions)
Current assets .................. •
Long-term assets .... . ........... .
Total assets ......... .. . .. ...... .
Current liabilities ........ .. ....... .
Long-term liabilities ...... . . ....... .
Total liabilities ................... .
Stockholders' equity* ........ . .... .
Total liabilities and equity .......... .
· includes noncontrolling interest Comcast $94,507 75,498 19,009 7,147 $11 ,862 Comcast $ 21,848 229,836 $251,684 $ 27,603 151,579 179, 182 72,502 $251,684 Verizon $130,863 108,585 22,278 6,239 $ 16,039 Verizon $ 34,636 230,193 $264,829 $ 37,930 172, 189 210,119 54,710 $264,829

a. Express each income statement amount as a percentage of sales. Comment on any differences observed between the two companies.

b. Express each balance sheet amount as a percentage of total assets. Comment on any differences observed 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 capi tal expenditures that each must make to remain competitive.