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Analysis of financial statements of Intel

Go to Intel's "Annual reports, 10-Ks and proxy statements" page at and download the PDF file titled Form 10-K. This should be the second bullet point under 2007 Online Annul Report and 10-K.

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 2006 and 2007. 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 2007? 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.

Assignment Checklist:

1. Identify the trend in operating expenses (Question 1)

2. Show the current ratio (Question 2)

3. Identify the three activities (sections) on the statement of cash flows (Question 3)

4. Identify the dividends paid, number of shares, and dividends per share (Question 4)

Solution Summary

The solution contains the analysis of the financial statements of Intel