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4. In the AT & T Annual Report find the Financial Statements. Then, complete the following table: Find working capital, current ratio in 2017,2016 AT& TFinancial Data Year 017 2016 2015 Total Operating Revenue Total Operating Expenses Total Current Assets Total Assets Current Liabilities Total Liablities Total Stockholders Equity Stoukholders Equity Explain in writing what each of the above mean
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AT & T Financial Data 2017 163,786 139,439 12,976 38,369 403,821 50,576 279,711 124,110 403,821 146,801 From Consolidated Statements of Income 122,016 From Consolidated Statements of Income Total Operating Revenue Total Operating Expenses Net Income attributable to AT & T Total Current Assets (A) Total Assets Total Current Liabilities (B) Total Liabilities Total Stockholders Equity Total Liabilities & Stockholders Equit 160,546 139,597 29,450 79,146 444,097 81,389 302,090 142,007 444,097 13,345 From Consolidated Statements of Income 35,992 Consolidated Balance Sheets 402,672 Consolidated Balance Sheets 47,816 Consolidated Balance Sheets 279,032 Consolidated Balance Sheets 123,640 Consolidated Balance Sheets 402,672 Consolidated Balance Sheets Total Current Assets (A) Total Current Liabilities (B Working Capital (A-B 38,369 50,576 (2,243)(12,207)(11,824) 79,146 81,389 35,992 47,816 Current Ratio-A/B 0.97 0.76 Working Capital (A-B Net working capital is a liquidity calculation that measures a companys ability to pay off its current liabilities with current assets. This measurement is important to management, vendors, and general creditors because it shows the firms short-term liquidity as well as managements ability to use its assets efficientl If a company cant meet its current obligations with current assets, it will be forced to use its long-term assets, or income producing assets, to pay off its current obligations. This can lead decreased operations, sales, and may even be an indicator of more severe A negative net working capital, on the other hand, shows creditors and investors that the operations of the business arent producing enough to support the business current debts. If this negative number continues over time, the business might be required to sell some of its long-term, income producing assets to pay for current obligations like AP and payroll. Expanding without taking on new debt or investors would be out of the question and if the negative trend continues, net WC could lead to a company declaring bankruptcy Since AT&Ts liabilities exceeded its assets, its WC would be negative both in 2017 & 2016 indicating that its short-term liquidity isnt as high as it could be organizational and financial problems Current Ratio A/B The current ratio is a liquidity and efficiency ratio that measures a firms ability to pay off its short-term liabilities with its current ets. The current ratio is an important measure of liquidity because short-term liabilities are due within the next year The current ratio helps investors and creditors understand the liquidity of a company and how easily that company will be able to pay off its current liabilities. This ratio expresses a firms current debt in terms of current assets A higher current ratio is always more favorable than a lower current ratio because it shows the company can more easily make current debt payments. If a company has to sell of fixed assets to pay for its current liabilities, this usually means the company isnt making enough from operations to support activities. In other words, the company is losing money. Sometimes this is the result of poor collections of accounts receivable As you can see,At&T only has enough current assets to pay off 97% & 76% percent of its current liabilities in 2017 & 2016. This shows that AT&T is highly leveraged and highly risky. Banks would prefer a current ratio of at least 1 or 2, so that all the current liabilities would be covered by the current assets. Since AT&Ts ratio is so low, it is unlikely that it will get approved for additional

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