(All dollar amounts are in millions) (All dollar amounts are in millions) Complete a vertical analysis of the items highlighted in yellow for both companies. Verizon T Mobile Income Statement Income Statement Years Ended Dec 31 Years Ended Dec 31 2021 2020 2019 2018 2021 2020 2019 2018 Operating Revenues Revenue Service Revenue $ 110,449 $ 109,872 $ 110,305 $ 108,605 Service Revenue $ 58,369 $ 50,395 $ 34,500 $ 32,441 Wire equipment revenue $ 23,164 $ 18,420 $ 21,563 $ 22,258 Equipment Revenue $ 20,727 $ 17,312 $ 9,840 $ 10,009 Other $ 1,022 $ 690 $ 658 $ 860 Total Net Revenue $ 133,613 $ 128,292 $ 131,868 $ 130,863 Total Net Revenue $ 80,118 $ 68,397 $ 44,998 $ 43,310 Cost of Revenues Cost of Revenue Cost of Services $ 31,234 $ 31,401 $ 31,772 $ 32,185 Cost of Services $ 13,934 $ 11,878 $ 6,622 $ 6,307 Cost of Equipment $ 25,067 $ 19,800 $ 22,954 $ 23,323 Cost of Equipment $ 22,671 $ 16,388 $ 11,899 $ 12,047 Total Cost of Rvenue $ 56,301 $ 51,201 $ 54,726 $ 55,508 Total Cost of Revenue $ 36,605 $ 28,266 $ 18,521 $ 18,354 Gross Margin $ 77,312 $ 77,091 $ 77,142 $ 75,355 Gross Margin $ 43,513 $ 40,131 $ 26,477 $ 24,956 Operating Expenses Operating Expenses Selling, general, and admin $ 28,658 $ 31,573 $ 29,896 $ 31,083 Selling, general, and admin $ 20,238 $ 18,926 $ 14,139 $ 13,161 Depreciation & Amortization $ 16,206 $ 16,720 $ 16,682 $ 17,403 Impairment expense $ - $ 418 $ - $ - Media goodwill impairment $ - $ 186 $ 4,591 Depreciation and Amortization $ 16,383 $ 14,151 $ 6,616 $ 6,486 Total Operating Expenses $ 44,864 $ 48,293 $ 46,764 $ 53,077 Total Operating Expenses $ 36,621 $ 33,495 $ 20,755 $ 19,647 Operating Income $ 32,448 $ 28,798 $ 30,378 $ 22,278 Operating Income $ 6,892 $ 6,636 $ 5,722 $ 5,309 Equity in Losses of unconsolidated business $ 145 $ (45) $ (15) $ (186) Interest Expense $ (3,189) $ (2,483) $ (727) $ (835) Other Income (expense) $ 312 $ (539) $ (2,900) $ 2,364 Interest expense to affiliates $ (173) $ (247) $ (408) $ (522) Interest Expense $ (3,485) $ (4,247) $ (4,730) $ (4,833) Interest income $ 20 $ 29 $ 24 $ 19 Other expenses $ (199) $ (405) $ (8) $ (54) Income before Taxes $ 29,420 $ 23,967 $ 22,733 $ 19,623 Income before Taxes $ 3,351 $ 3,530 $ 4,603 $ 3,917 Provision for Taxes $ (6,802) $ (5,619) $ (2,945) $ (3,584) Provision for Taxes $ (327) $ (786) $ (1,135) $ (1,029) Net Income $ 22,618 $ 18,348 $ 19,788 $ 16,039 Net Income from continuing ops $ 3,024 $ 2,744 $ 3,468 $ 2,888 EPS (Earnings Per Share) $ 5.32 $ 4.30 $ 4.65 $ 3.76 EPS (Earnings Per Share) $ 2.42 $ 2.68 $ 4.06 $ 3.40 Verizon Balance Sheet T Mobile Balance Sheet 2021 2020 2019 2021 2020 2019 Current Assets Current Assets Cash $ 2,921 $ 22,171 $ 2,594 Cash $ 6,631 $ 10,385 $ 1,528 A/R (net) $ 23,846 $ 23,917 $ 25,429 A/R (net) $ 4,167 $ 4,254 $ 1,888 Inventories $ 3,055 $ 1,796 $ 1,422 Equipment receivables $ 4,748 $ 3,577 $ 2,600 Prepaid Expenses $ 6,906 $ 6,710 $ 8,028 A/R from affiliates $ 27 $ 22 $ 20 Inventory $ 2,567 $ 2,527 $ 964 Prepaid Expenses $ 746 $ 624 $ 333 Other current assets $ 2,005 $ 2,496 $ 1,972 Total Current Assets $ 36,728 $ 54,594 $ 37,473 Total Current Assets $ 20,891 $ 23,885 $ 9,305 Non-Current Assets Non-Current Assets PP&E (net) $ 99,696 $ 94,833 $ 91,915 PP & E (net) $ 39,803 $ 41,175 $ 21,984 Investments in unconsolidated businesses $ 1,061 $ 589 $ 558 Operating Lease $ 26,959 $ 28,021 $ 10,933 Wireless Licenses $ 147,619 $ 96,097 $ 95,059 Financing right of use assets $ 3,322 $ 3,028 $ 2,715 Goodwill $ 28,603 $ 24,773 $ 24,389 Goodwill $ 12,188 $ 11,117 $ 1,930 Other Intangibles $ 11,677 $ 9,413 $ 9,498 Spectrum licenses $ 92,606 $ 82,828 $ 36,465 Operating Leases $ 27,883 $ 22,531 $ 22,694 Other Intangibles $ 4,733 $ 5,298 $ 115 Other assets $ 13,329 $ 13,651 $ 10,141 Equipment receivables $ 2,829 $ 2,031 $ 1,583 Other assets $ 3,232 $ 2,779 $ 1,891 Total non-current $ 329,868 $ 261,887 $ 254,254 Total non-current assets $ 185,672 $ 176,277 $ 77,616 Total Assets $ 366,596 $ 316,481 $ 291,727 Total Assets $ 206,563 $ 200,162 $ 86,921 Current Liabilities Current Liabilities Current portion of debt $ 7,443 $ 5,889 $ 10,777 Accounts Payable $ 11,405 $ 10,196 $ 6,746 Accounts payable $ 24,833 $ 20,658 $ 21,806 Payables to Affiliates $ 103 $ 157 $ 187 Current operating lease liabilities $ 3,859 $ 3,485 $ 3,261 Short-term Debt $ 5,623 $ 4,579 $ 25 Other current liabilities $ 11,025 $ 9,628 $ 9,024 Deferred revenue $ 856 $ 1,030 $ 631 Short-term Operating Lease $ 3,425 $ 3,868 $ 2,287 Short-term financing lease $ 1,120 $ 1,063 $ 957 Other current liabilities $ 967 $ 810 $ 1,673 Total current liabilities $ 47,160 $ 39,660 $ 44,868 Total current Liabilities $ 23,499 $ 21,703 $ 12,506 Non-Current Liabilities $ 113,962 $ 113,115 $ 45,626 Non-Current Liabilities $ 236,236 $ 207,549 $ 184,024 Total Liabilities $ 137,461 $ 134,818 $ 58,132 Total Liabilities $ 283,396 $ 247,209 $ 228,892 Equity Equity Common Stock $ - $ - $ - Preferred Stock $ - $ - Additional Paid in Capital $ 73,292 $ 72,772 $ 38,498 Common Stock $ 429 $ 429 $ 429 Treasury Stock $ (13) $ (11) $ (8) Additional Paid in Capital $ 13,861 $ 13,404 $ 13,419 AOCI or loss $ (1,365) $ (1,581) $ (868) Retained Earnings $ 71,993 $ 60,464 $ 53,147 Accumulated Deficit (R/E) $ (2,812) $ (5,836) $ (8,833) AOCI or loss $ (927) $ (71) $ 998 Treasury Stock $ (4,104) $ (6,719) $ (6,820) Deferred Compensation $ 538 $ 335 $ 222 Noncontrolling Interest $ 1,410 $ 1,430 $ 1,440 Total Equity $ 83,200 $ 69,272 $ 62,835 Total Equity $ 69,102 $ 65,344 $ 28,789 Total Liabilities Plus Equity $ 366,596 $ 316,481 $ 291,727 Total Liabilities Plus Equity $ 206,563 $ 200,162 $ 86,921 Verizon Cash Flow Cash Flow 2021 2020 2019 2018 2021 2020 2019 2018 Cash from Operating Activities $ 39,539 $ 41,768 $ 35,746 $ 34,339 Cash from Operating Activities $ 13,917 $ 8,640 $ 6,824 $ 3,899 Cash From Investing Activities $ (67,153) $ (23,512) $ (17,581) $ (17,934) Cash From Investing Activities $ (19,386) $ (12,715) $ (4,125) $ (579) Cash from Financing Activities $ 8,277 $ 1,325 $ (18,164) $ (15,377) Cash from Financing Activities $ 1,709 $ 13,010 $ (2,374) $ (3,366) Increase in Cash $ (19,337) $ 19,581 $ 1 $ 1,028 Increase in Cash $ (3,760) $ 8,935 $ 325 $ (46) Cash at beginning of period $ 23,498 $ 3,917 $ 3,916 $ 2,888 Cash at beginning of period $ 10,463 $ 1,528 $ 1,203 $ 1,219 Cash at end of period $ 4,161 $ 23,498 $ 3,917 $ 3,916 Cash at end of period $ 6,703 $ 10,463 $ 1,528 $ 1,173 Vertical Analysis Verizon T Mobile Whose is better for 2021? (choose one) Why? Gross Margin Net Profit Margin Liabilities as a % of Total Liab + Eq. Verizon T Mobile Whose is best in each year? 2021 2020 2021 2020 2021 2020 Current Ratio Debt to Equity Ratio Sales Growth % over prior year Net Income Growth % over prior year Return on Equity EPS (copy from income statement) Upon completion of the above, in which company would you invest your $1,000? Why? Use your analysis to support your choice.