For this question, you will be studying the financial documents of two companies in the communication industry: AT&T Inc. and Verizon Communications Inc. Assume all questions are about Financial Year 2021 unless specified otherwise.

Given below is the Balance Sheet and Income Statement of: AT&T Inc. Use these documents to answer parts a-h.

AT&T Inc. Balance Sheet:

AT&T Inc. Income Statement

a) What is AT&T Incs debt ratio Assume AT&T Inc. does not have any short-term debt. Round to the nearest tenth. For example, if you get 5.549%, enter 5.5.

b) What is AT&T Inc.s current ratio? Round to the nearest hundredth, recalling that the ratio is reported as such (i.e., not as a percentage).

c) AT&T Inc.s current ratio has ___________ since 2020 which is __________.

Increased, desirable

Decreased, desirable

Remained constant, desirable

Increased, not desirable

Decreased, not desirable

Remained constant, not desirable

d) From your answer to part b, what can you say about the working capital?

The working capital is positive

The working capital is negative

There is not enough information to comment on the working capital

e) What does it mean when the inventory turnover ratio is high?

We are keeping inventory for a shorter time which is desirable

We are keeping inventory for a longer time which is not desirable

We are keeping inventory for a shorter time which is not desirable

We are keeping inventory for a longer time which is desirable

Our inventory levels are high which is not desirable

Our inventory levels are low which is desirable

f) What is AT&T Inc.s total assets turnover? Round to the nearest hundredth.

g) Find the total assets turnover for 2020 and 2019. AT&T Inc.s total assets turnover has ______ since 2019 which is _________.

Increased, desirable

Decreased, not desirable

Remained constant, not desirable

Decreased, desirable

Remained constant, desirable

Increased, not desirable

h) What is AT&T Inc.s profit margin? Round to the nearest hundredth. For example, if you get 5.549%, enter 5.55.