Accounting: What the Numbers Mean 9th Edition by Wayne W McManus, Daniel F Viele, David H Marshall

Exercise 56

Operating income versus net income Refer to the selected financial data (five-year financial summary) on page 685 of the Intel Corporation annual report in the appendix.

Required:

Compare the trend of the operating income data with the trend of net income data from 2004 through 2008. Which series of data is more meaningful? Explain your answer.

Step 1 of 3

Operating income versus net income

The idea is to extract the operating income data and net income data from page 685 of this textbook referred as the annual report of Intel Corporation and accordingly made a trend analysis for the period of fiscal year 2004–2008. Hence, the extracted data are as follows: