Question: Comparing Income Statements and Balance Sheets of Competitors. Following are selected income statement and balance sheet data for two communications companies:
Comcast and Verizon, for the year ended December 31, 2012.
![2228_Comcast.png](https://secure.tutorsglobe.com/CMSImages/2228_Comcast.png)
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 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.