T-Mobile US, Inc and AT&T, Inc are the two companies in the same industry. Please use the financial ratio analysis that you learned from the course to compare these two companies. Please provide some forecast for them in the next quarters of 2018 in your opinion. Please submit the work in a Word document on Moodle. (Note: please make sure to show all the details and calculations to earn full credits)

T-Mobile US, Inc. (TMUS) Income Statement All numbers in thousands

Revenue 9/30/2018 6/30/2018 3/31/2018 12/31/2017

Total Revenue 10,768,000 10,571,000 10,455,000 10,759,000

Cost of Revenue 4,502,000 4,372,000 4,434,000 5,096,000

Gross Profit 6,266,000 6,199,000 6,021,000 5,663,000

Operating Expenses Research Development - - - -

Selling General and Administrative 3,274,000 3,144,000 3,164,000 3,291,000

Non Recurring - - - -

Others - - - -

Total Operating Expenses 9,413,000 9,150,000 9,173,000 9,809,000

Operating Income or Loss 1,355,000 1,421,000 1,282,000 950,000

Income from Continuing Operations

Total Other Income/Expenses Net -225,000 -353,000 -401,000 -236,000

Earnings Before Interest and Taxes 1,355,000 1,421,000 1,282,000 950,000

Interest Expense -318,000 -324,000 -417,000 -416,000

Income Before Tax 1,130,000 1,068,000 881,000 714,000

Income Tax Expense 335,000 286,000 210,000 -1,993,000

Minority Interest - - - -

Net Income From Continuing Ops 795,000 782,000 671,000 2,707,000

Non-recurring Events Discontinued Operations - - - -

Extraordinary Items - - - -

Effect Of Accounting Changes - - - -

Other Items - - - -

Net Income Net Income 795,000 782,000 671,000 2,707,000

Preferred Stock And Other Adjustments - - - -

Net Income Applicable To Common Shares 795,000 782,000 671,000 2,693,000

Balance Sheet All numbers in thousands

Period Ending 6/30/2018 3/31/2018 12/31/2017 9/30/2017

Current Assets Cash And Cash Equivalents 215,000 2,527,000 1,219,000 739,000

Short Term Investments - - - -

Net Receivables 4,018,000 3,983,000 4,227,000 3,894,000

Inventory 998,000 1,311,000 1,566,000 999,000

Other Current Assets 1,860,000 1,788,000 1,903,000 1,817,000

Total Current Assets 7,091,000 9,609,000 8,915,000 7,449,000

Long Term Investments - - - -

Property Plant and Equipment 22,375,000 22,308,000 22,196,000 21,570,000

Goodwill 1,901,000 1,901,000 1,683,000 1,683,000

Intangible Assets 35,792,000 35,795,000 35,583,000 35,263,000

Accumulated Amortization - - - -

Other Assets 2,533,000 2,391,000 2,186,000 1,958,000

Deferred Long Term Asset Charges - - - -

Total Assets 69,692,000 72,004,000 70,563,000 67,923,000

Current Liabilities Accounts Payable 6,655,000 7,157,000 6,182,000 6,071,000

Short/Current Long Term Debt 30,544,000 33,060,000 30,909,000 30,906,000

Other Current Liabilities 1,302,000 1,435,000 1,755,000 1,474,000

Total Current Liabilities 9,281,000 12,357,000 11,515,000 8,103,000

Long Term Debt 26,646,000 26,713,000 25,496,000 27,749,000

Other Liabilities 7,801,000 7,476,000 7,192,000 9,195,000

Deferred Long Term Liability Charges - - - -

Minority Interest - - - -

Negative Goodwill - - - -

Total Liabilities 46,302,000 49,128,000 48,004,000 47,646,000

Stockholders' Equity Misc. Stocks Options Warrants - - - -

Redeemable Preferred Stock - - - -

Preferred Stock - - - -

Common Stock - - - -

Retained Earnings -14,389,000 -15,179,000 -16,074,000 -18,781,000

Treasury Stock -7,000 -2,000 4,000 -

Capital Surplus 37,786,000 38,057,000 38,629,000 39,058,000

Other Stockholder Equity - 5,000 8,000 4,000

Total Stockholder Equity 23,390,000 22,876,000 22,559,000 20,277,000

Net Tangible Assets -14,303,000 -14,820,000 -14,707,000 -16,669,000

Cash Flow All numbers in thousands Period Ending 6/30/2018 3/31/2018 12/31/2017 9/30/2017

Net Income 782,000 671,000 2,707,000 550,000

Operating Activities, Cash Flows Provided By or Used In Depreciation 1,634,000 1,575,000 1,422,000 1,416,000

Adjustments To Net Income 574,000 437,000 -1,821,000 686,000

Changes In Accounts Receivables -1,422,000 -1,095,000 -652,000 -273,000

Changes In Liabilities -79,000 -1,028,000 1,686,000 -12,000

Changes In Inventories 125,000 33,000 -816,000 113,000

Changes In Other Operating Activities -353,000 177,000 -394,000 -124,000

Total Cash Flow From Operating Activities 1,261,000 770,000 2,058,000 2,362,000

Investing Activities, Cash Flows Provided By or Used In Capital Expenditures -1,629,000 -1,366,000 -921,000 -1,441,000

Investments - - - -

Other Cash flows from Investing Activities 33,000 -7,000 3,000 1,000

Total Cash Flows From Investing Activities -306,000 -462,000 -926,000 -1,455,000

Financing Activities, Cash Flows Provided By or Used In Dividends Paid - - -14,000 -13,000

Sale Purchase of Stock - - - -

Net Borrowings -2,630,000 1,768,000 -140,000 -325,000

Other Cash Flows from Financing Activities -222,000 -28,000 -27,000 -5,000

Total Cash Flows From Financing Activities -3,267,000 1,000,000 -652,000 -349,000

Effect Of Exchange Rate Changes - - - -

Change In Cash and Cash Equivalents -2,312,000 1,308,000 480,000 558,000

AT&T Inc. (T) Income Statement All numbers in thousands Revenue 6/30/2018 3/31/2018 12/31/2017 9/30/2017

Total Revenue 38,986,000 38,038,000 41,676,000 39,668,000

Cost of Revenue 17,458,000 17,946,000 22,332,000 18,906,000

Gross Profit 21,528,000 20,092,000 19,344,000 20,762,000

Operating Expenses Research Development - - - -

Selling General and Administrative 8,230,000 7,675,000 10,000,000 8,317,000

Non Recurring - - - -

Others - - - -

Total Operating Expenses 32,066,000 31,615,000 38,403,000 33,265,000

Operating Income or Loss 6,920,000 6,423,000 3,273,000 6,403,000

Income from Continuing Operations Total Other Income/Expenses Net -140,000 -282,000 -4,556,000 -1,429,000

Earnings Before Interest and Taxes 6,920,000 6,423,000 3,273,000 6,403,000

Interest Expense -2,023,000 -1,771,000 -1,926,000 -1,686,000

Income Before Tax 6,780,000 6,141,000 -1,283,000 4,974,000

Income Tax Expense 1,532,000 1,382,000 -20,419,000 1,851,000

Minority Interest 1,150,000 1,156,000 1,146,000 1,149,000

Net Income From Continuing Ops 5,248,000 4,759,000 19,136,000 3,123,000

Non-recurring Events Discontinued Operations - - - -

Extraordinary Items - - - -

Effect Of Accounting Changes - - - -

Other Items - - - -

Net Income Net Income 5,132,000 4,662,000 19,037,000 3,029,000 Preferred Stock And Other Adjustments - - - -

Net Income Applicable To Common Shares 5,132,000 4,662,000 19,037,000 3,029,000

Balance Sheet All numbers in thousands Period Ending 6/30/2018 3/31/2018 12/31/2017 9/30/2017

Current Assets Cash And Cash Equivalents 13,523,000 48,872,000 50,498,000 48,499,000

Short Term Investments 34,000 - 1,000 509,000

Net Receivables 27,562,000 19,538,000 18,303,000 17,899,000

Inventory - - 2,225,000 -

Other Current Assets 12,201,000 8,760,000 6,750,000 8,192,000

Total Current Assets 55,286,000 78,505,000 79,146,000 76,357,000

Long Term Investments 8,863,000 2,623,000 2,292,000 4,192,000

Property Plant and Equipment 129,556,000 125,124,000 125,222,000 126,462,000

Goodwill 142,607,000 105,482,000 105,449,000 105,668,000

Intangible Assets 169,445,000 113,635,000 114,276,000 115,419,000

Accumulated Amortization - - - -

Other

Assets 28,934,000 20,974,000 17,712,000 15,767,000

Deferred Long Term Asset Charges - - - -

Total Assets 534,691,000 446,343,000 444,097,000 443,865,000

Current Liabilities Accounts Payable 35,377,000 31,475,000 24,439,000 28,928,000

Short/Current Long Term Debt 191,762,000 163,830,000 165,667,000 165,122,000

Other Current Liabilities 11,544,000 9,783,000 12,046,000 10,214,000

Total Current Liabilities 68,593,000 70,580,000 81,389,000 47,693,000

Long Term Debt 170,090,000 134,508,000 125,617,000 156,571,000

Other Liabilities 111,878,000 94,179,000 93,408,000 113,492,000

Deferred Long Term Liability Charges - - - - Minority Interest 1,150,000 1,156,000 1,146,000 1,149,000

Negative Goodwill - - - - Total Liabilities 350,561,000 299,267,000 302,090,000 317,756,000

Stockholders' Equity Misc. Stocks Options Warrants - - - - Redeemable Preferred Stock - - - - Preferred Stock - - - -

Common Stock 7,621,000 6,495,000 6,495,000 6,495,000

Retained Earnings 56,555,000 55,067,000 50,500,000 36,074,000

Treasury Stock -7,156,000 -5,046,000 -5,697,000 -7,136,000

Capital Surplus 125,960,000 89,404,000 89,563,000 89,527,000

Other Stockholder Equity 5,716,000 7,386,000 7,017,000 5,580,000

Total Stockholder Equity 182,980,000 145,920,000 140,861,000 124,960,000

Net Tangible Assets -129,072,000 -73,197,000 -78,864,000 -96,127,000

Cash Flow All numbers in thousands Period Ending 6/30/2018 3/31/2018 12/31/2017 9/30/2017

Net Income 5,132,000 4,662,000 19,037,000 3,029,000 Operating Activities,

Cash Flows Provided By or Used In Depreciation 6,378,000 5,994,000 3,261,000 6,042,000

Adjustments To Net Income 296,000 399,000 -14,780,000 2,164,000

Changes In Accounts Receivables 672,000 -439,000 -334,000 -771,000

Changes In Liabilities -1,928,000 -1,962,000 2,253,000 1,324,000

Changes In Inventories - - - -

Changes In Other Operating Activities -489,000 293,000 -2,370,000 -674,000

Total Cash Flow From Operating Activities 10,229,000 8,947,000 9,877,000 11,114,000

Investing Activities, Cash Flows Provided By or Used In Capital Expenditures -5,108,000 -6,118,000 -5,076,000 -5,251,000

Investments -130,000 -1,123,000 -2,000 -2,000

Other Cash flows from Investing Activities 233,000 267,000 1,000 1,000

Total Cash Flows From Investing Activities -45,483,000 -7,152,000 -5,105,000 -5,318,000

Financing Activities, Cash Flows Provided By or Used In Dividends Paid -3,074,000 -3,070,000 -3,008,000 -3,009,000

Sale Purchase of Stock - - - -

Net Borrowings 6,443,000 -2,346,000 2,000 18,457,000

Other Cash Flows from Financing Activities -3,169,000 2,048,000 229,000 1,638,000

Total Cash Flows From Financing Activities -218,000 -3,502,000 -2,773,000 17,086,000

Effect Of Exchange Rate Changes - - - -

Change In Cash and Cash Equivalents -35,472,000 -1,707,000 1,999,000 22,882,000