Financial Management

FINANCIAL
MANAGEMENT

Part I and Part II
The problem in the part one and part two was to extract the financial statements of a
levered enterprise. The company chosen for the assignment is Verizon Communications Inc.
The financial data has been extracted from the website Morning Star and has been presented
as follows.
VERIZON COMMUNICATIONS INC (VZ)
Fiscal year endesd on December 2018
Amount in million
$
Revenue 130863
Cost of revenue 55508
Gross profit 75355
Operating expenses
Sales, General and administrative 31083
Other operating expenses 17403
Total operating expenses 48486
Operating income 26869
Interest Expense 4833
Other income (expense) -2413
Income before taxes 19623
Provision for income taxes 3584
Net income from continuing operations 16039
Other -511
Net income 15528
Net income available to common shareholders 15528
Earnings per share
Basic 3.76
Diluted 3.76
Weighted average shares outstanding
Basic 4128
Diluted 4132
EBITDA 41859
(Source: Morning Star, 2019)
VERIZON COMMUNICATIONS INC
(VZ) BALANCE SHEET
Fiscal year ended on December 2018 Amount in million $
Assets
Current assets
Cash
Cash and cash equivalents 2745

Short-term investments
Total cash 2745
Receivables 25102
Inventories 1336
Prepaid expenses 5453
Other current assets
Total current assets 34636
Non-current assets
Property, plant and equipment
Gross property, plant and equipment 252835
Accumulated Depreciation -163549
Net property, plant and equipment 89286
Equity and other investments 671
Goodwill 24614
Intangible assets 103905
Other long-term assets 11717
Total non-current assets 230193
Total assets 264829
Liabilities and stockholders' equity
Liabilities
Current liabilities
Short-term debt 7190
Accounts payable 7232
Taxes payable 1483
Accrued liabilities 13786
Deferred revenues 4207
Other current liabilities 4032
Total current liabilities 37930
Non-current liabilities
Long-term debt 105873
Deferred taxes liabilities 33795
Minority interest 1565
Other long-term liabilities 32521
Total non-current liabilities 173754
Total liabilities 211684
Stockholders' equity
Common stock 429
Additional paid-in capital 13437
Retained earnings 43542
Treasury stock -6986
Accumulated other comprehensive income 2723
Total stockholders' equity 53145
Total liabilities and stockholders' equity 264829