Financial Data of the Intel Corporation

We know from our studies that financial statements are useful for internal purposes, as well as for external purposes, for potential investors. Intel’s financial statements tell a story, and you will study some aspects of the financials and see if you can retell that story.

Go to Intel’s “Annual reports, 10-Ks and proxy statements” page at and download the 2010 PDF file titled http://www.intc.com/annuals.cfm Form 10-K. This is located in the middle of the page.

The Form 10-K PDF comprises comparative financial statements for several years, and this discussion will concentrate on these financial statements.

Checklist:

Question 1

Study the income statement. Concentrate on the operating expenses. Please write in your own words a paragraph – about 50 words – explaining the trends in operating expenses. Explain what you think “restructuring and asset impairment charges are.”

Question 2

Study the balance sheets for 2009 and 2010. Please discuss the current ratios for both years, writing a paragraph of at least 50 words, explaining what elements of the current ratios are responsible for the changes.

Question 3

Study the statements of cash flows. Please discuss the three activities detailed in the statement of cash flows and describe the information and where the preparer of a statement of cash flows can find the information. Your discussion should be one or more paragraphs totaling at least 50 words.

Question 4

Study the statement of owner’s equity. Several factors are responsible for the change in the owner’s equity in the two years being compared. Intel has only one class of stock outstanding.

Did the number of shares of that stock increase or decrease during the year 2010? Did the company pay a cash dividend during the year? If so, how much per share? Where did you find that information? Please discuss those elements, writing a paragraph of at least 50 words, explaining where you can find the details of these answers.