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Consolidated Balance Sheets Verizon Communications Inc. and Subsidiaries At December 31, (dollars in millions, except per share amounts) 2020 2019 22,171 S 25,169 1,252 2.594 26,162 Assets Current assets Cash and cash equivalents Accounts receivable Less Allowance for credit losses Less Allowance for doubtful accounts Accounts receivable, net (Note 1) Inventories Prepaid expenses and other Total current assets 23,917 1,796 6,710 54,594 733 25,429 1,422 8,028 37,473 Property, plant and equipment Less Accumulated depreciation Property, plant and equipment, net 279,737 184,904 94,833 265,734 173,819 91.915 Investments in unconsolidated businesses Wireless licenses Goodwill Other intangible assets, net Operating lease right-of-use assets Other assets Total assets 589 96,097 24,773 9,413 22,531 13,651 316,481 S 558 95,059 24,389 9,498 22,694 10,141 291,727 5,889 $ 20,658 3,485 9,628 39,660 10,777 21,806 3,261 9,024 44,868 Liabilities and Equity Current liabilities Debt maturing within one year Accounts payable and accrued liabilities Current operating lease liabilities Other current liabilities Total current liabilities Long-term debt Employee benefit obligations Deferred income taxes Non-current operating lease liabilities Other liabilities Total long-term liabilities 123,173 18,657 35,711 18,000 12,008 207,549 100,712 17,952 34,703 18,393 12,264 184,024 Commitments and Contingencies (Note 16) Equity Series preferred stock (S0.10 par value: 250,000,000 shares authorized; none issued) Common stock (S0.10 par value; 6,250,000,000 shares authorized in each period; 4,291,433,646 shares issued in each period) Additional paid in capital Retained earnings Accumulated other comprehensive income (loss) Common stock in treasury, at cost (153,304,088 and 155,605,527 shares outstanding) Deferred compensation - employee stock ownership plans and other Noncontrolling interests Total equity Total liabilities and equity See Notes to Consolidated Financial Statements 429 13,404 60,464 (71) (6,719) 335 1,430 69.272 316,481 S 429 13,419 53,147 998 (6,820) 222 1,440 62,835 291,727 S Balance Sheet Information (dollars in millions) 2020 2019 At December 31 Prepaid expenses and other Prepaid taxes Deferred contract costs Restricted cash Other prepaid expense and other 1,200 $ 2,472 1,195 1,843 6,710 S 2,438 2,578 1,221 1,791 8,028 S Accounts payable and accrued liabilities Accounts payable Accrued expenses Accrued vacation, salaries and wages Interest payable Taxes payable 6,667 S 6,050 5,057 1.452 1.432 20,658 S 7,725 5,984 4.885 1,441 1,771 21,806 S Other current liabilities Dividends payable Contract liability Other 2,618 S 4,843 2,167 9,628 S 2.566 4,651 1,807 9,024 Cash Flow Information (dollars in millions) 2019 2018 2020 Years Ended December 31, Cash Paid Interest, net of amounts capitalized Income taxes, net of amounts refunded S 4,420 S 2,725 4,714 S 3,583 4,408 2,213 Other, net Cash Flows from Operating Activities Changes in device payment plan agreement non-current receivables Early debt extinguishment costs Loss on spectrum license auction Other, net 23 S 3,604 (509) 725 558S 129 1,195 898 2,780 S (134) 3,493 S 219 S (1,055) S (1,797) S Other, net Cash Flows from Financing Activities Net debt related costs Change in short-term obligations, excluding current maturities Other, net (141) (790) (893) (1.824) (1,657) (2,712) S (1,120) (2,917) S Note 16. Commitments and Contingencies In the ordinary course of business, Verizon is involved in various commercial litigation and regulatory proceedings at the state and federal level. Where it is determined, in consultation with counsel based on litigation and settlement risks, that a loss is probable and estimable in a given matter, the Company establishes an accrual. In none of the currently pending matters is the amount of accrual material. An estimate of the reasonably possible loss or range of loss in excess of the amounts already accrued cannot be made at this time due to various factors typical in contested proceedings, including: (1) uncertain damage theories and demands; 2) a less than complete factual record; (3) uncertainty concerning legal theories and their resolution by courts or regulators, and (4) the unpredictable nature of the opposing party and its demands. We continuously monitor these proceedings as they develop and adjust any accrual or disclosure as needed. We do not expect that the ultimate resolution of any pending regulatory or legal matter in future periods will have a material effect on our financial condition, but it could have a material effect on our results of operations for a given reporting period. Verizon is currently involved in approximately 25 federal district court actions alleging that Verizon is infringing various patents. Most of these cases are brought by non-practicing entities and effectively seek only monetary damages, a small number are brought by companies that Verizon 2020 Annual Report on Form 10-K During 2020 Verizon's total current liabilities decreased while both its total noncurrent liabilities and total liabilities increased. True False Over the last two balance sheet dates, Verizon's total long-term liabilities as a percentage of total liabilities (total long-term liabilities / total liabilities): a, increased b. decreased c. stayed the same d. cannot be determined Calculate Verizon's current ratio (current assets / current liabilities) at the last two balance sheet dates. (Round to two decimal places.) Based on the current ratio, Verizon was less liquid in 2020 than it was in 2019. True False Based on the debt to assets ratio (total liabilities / total assets), of Verizon's assets were provided by debt in 2020 than in 2019. Round to one decimal place. O a more O b. less O c. same amount O d. cannot be determined

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