Financial Statement Analysis Problem-A Comparative Analysis of Verizon Communications Inc. and Sprint Corporation Here is the link for the financial statements for Verizon Communications Inc. for the fiscal year ending December 31, 2017 Here is the link for the financial statements for Sprint Corporation for the fiscal year ending March 31 2018. Description Using the financial statements for Verizon Communications Inc. and Sprint Corporation, respectively, you will calculate and compare the financial ratios listed below and prepare your comments about the two companies' performance based on your ratio calculations. Overall Requirements Your final hand-written or printed submis sion should contain the following items. 1. Al 11 ratios for each company, with the supporting calculations. Supporting calculations must be shown as a written formula and all numbers used in the formulas. The ratios are listed below Comment on each of the ratios and compare the two companies. Your comments for each ratio should include more than just a definiton of the ratio. You should focus on interpreting each ratio number for each company and support your comments with the numbers found in the ratios. 2. 3. Included is a Summary and Conclusions page, where you need to make an overall comparison of how each company compares in terms of the major category of ratios described in Chapter 13 of your textbook. A nice way to conclude is to state which company you think is the better investment and why Required Ratios for Project Submission 1. Eamings per Share of Common Stock 2. Current Ratio 3. Days' Inventory Outstanding (DIO)/Days' sales in inventory 4. Days Sales Outstanding (DSO)/Days' sale uncollected 5. Accounts Receivable Turnover 6. Inventory Tumover 7. Asset Tumover 8. Debt Ratio 9. Return on Total Assets (ROA) 10. Gross Profit Margin Ratio 11. Profit Margin Ratio Summary and Conclusion Page You all get the chance to play the role of financial analyst below. The summary sho comparison of each company's performance for each major category of ratios (liqui solvency, and profitability) listed below. Focus on major differences as you compan company's performance. A nice way to conclude is to state which company you feel better investment and why. Measuring Liquidity-Ability to Pay Current Liabilities (Current Ratio, DIO, Dso) Measuring Turnover- of Inventory and Receivables (Inventory turnover, A/R turnover, Asset turnover Measuring Solvency-Overall Ability to Pay Debts (Debt ratio) Measuring Profitability (ROA, Gross profit margin ratio, Profit margin ratio): Conclusion: dollars in mallions, except per share amounts 2015 Years Ended December 31 2017 2016 Operating Revenues Service tevemaes and othe 107145 S 108468 S 114,696 16,924 31620 Wireless equipment revenues 17.512 Total Operating Revenues 25,980 Operating Expenso helow)Add together for COGS Add together for COGS Cost of services (exclusive of items showrn Wircless cost of equipment Selling, general and administrative expense (including net gain on sale of divested businasses of $1,774, 29,409 2.147 29.186 29438 23,119 2.238 $1,007 and SO, respectively) Depreciation and amortization expense 1,569 15,928 8,921 29,986 6017 98,560 30.110 14954 98620 Total Operating Expenses Operating Income 27,414 27,059 33,060 86) 186 4920 28,240 9865) 18,375 98 1,599) 4.376 20,986 7.378) 13,608 Other income (axpensc), net (2010) 4733 4594 Income Belore Benefit (Provision) Fer lncome Tases Bencfit (provision) for income taxes Net Income 0550 S Net income attributable to noncontrelling interests Net income attributable to Verizen Net Income 449 10.101 550 S 481 S 3.127 13,608 S 7879 18,375 Basic Earnings Per Common Share Net income attributahle to Varizon 737 S 322 S 4.38 4085 Diluted Earnings Per Common Share Net income attributable to Varizon 7.36 S 321 S .37 4,093 Sac Notes to Consolidated Finncial Statements dollans in millions,encept per shae amounts) Ad Deember 31 2017 2016 Curnent asscts Cash and cash equivalamts Accounts raceivahe, netof allowances of 599 and S345 2079 S 23,493 7,513 1,202 KK2 3,918 26,395 Assets held for sale Prepaid ases d otha 3,307 Totl cuent assets 29,913 Property, plant and oquipment 57.930 147.464 Propety, plant and oqipment, net 84.751 1,110 Wireless licenses 88417 29,172 27.205 Other intangile assdts, net Non-curent assets held for sale Othar asscts Totd assets 613 8,516 44,IN0 9,787 57,143 Liabilities and Equity Curnent liabilities Debt mauning within one yor Accounts payable and acceuod liabilitio 1453 S 21,232 19,993 8,102 10,340 8352 Totd curent liabilatics 3,037 Long-tem debe 113,642 22,112 31,232 12,433 179,419 105,433 26,166 45,964 12.245 89,808 Defemed income tases Other lialities Total long-tem liabilinic Scries prdened shock