In the attached files are the questions to be answered and the information needed to answer them. Answer all parts of the question completely.

Questions: 2-35, 2-37

2-35:

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 decision affect our evaluation of the riskiness of these two companies? Take into consideration the large level of capital expenditures that each must take to remain competitive.

2-37:

Record the effect of each of the following transactions for Hora Company using the financial statement effects template.

a) Wages of $500 are earned by employees but not yet paid.

b) $2,000 of inventory is purchased on credit.

c) Inventory purchased in transaction b is sold for $3,000 on credit.

d) Collected $3,000 cash from transaction c.

e) Equipment is acquired for $5,000 cash.

f) Recorded $1,000 depreciation expense on equipment from transaction e.

g) Paid $10,000 cash toward a note payable that came due.

h) Paid $2,000 cash for interest on borrowings.

Module 2 I Overview of Business Activities and Financial Statements 2-40 E2-35. Comparing Income Statements and Balance Sheets of Competitors (L01, 4) Following are selected income statement and balance sheet data for two communications compan Comcast and Verizon ies: COMCAS (CMCSA) VERIZON (VZ) Income Statement ($ millions) Comcast Verizon $37,937 $106,565 91,920 14,645 4,428 $ 3,635 $10,217 Saesng costs Operating costs 29,957 Operating profit 7,980 4,345 Net income.. . .. . 3,635 Balance Sheet ($ millions)Comcast $ 8,886 $118,534 Verizon $22,348 197,657 Current assets Total assets. $220,005 Current liabilities. Long-term liabilities Total liabilities Stockholders' equity". Total liabilities and equity 73,957 . .. 44,577 $118,534 $8,234 30,597 102,496 133,093 86,912 $220,005 "Includes noncontrolling interest Express each income statement amount as a percentage of sales. Comment on any differences observed between the two companies. 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. 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 capital expenditures that each must make to remain competitive. a. b. c