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

Exercise 6

Understanding footnote disclosures and financial summary data This problem is based on the 2008 annual report of Intel Corporation in the appendix. Find in the Selected Financial Data (also known as the Five-Year Financial Summary), or calculate, the following data:

a.Percentage of R&D relative to net revenues in 2008.

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b. Amount by which property, plant, and equipment decreased during 2008 (from depreciation, asset sales, and similar transactions).

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c. Year in which stockholders’ equity grew by the greatest amount over the previ­ous year.

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d. Change in total liabilities from 2004 to 2008.

Find the following data for 2008 in the Notes to the Consolidated Financial Statements:

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e. Amount of work-in-process inventory.

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f. Total revenues from unaffiliated customers earned in Europe.

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g. The company’s effective tax rate.

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h. Adjusted cost and fair value of available-for-sale investments held in asset- backed securities.

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i. Amount of land and buildings, exclusive of construction in progress.

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j. Market price range of common stock for the fourth quarter of 2008 (see page 745 in Intel’s 2008 annual report).

Step 1 of 10

Understand the footnote disclosures & financial summary data of Intel Corporation, which are as follows.

Note: The presented summarization is extracted from the appendix table of Intel Corporation given in the textbook.

Therefore, the findings based on extracted data are as follows:

a) Percentage of R&D relative to net revenues in 2008

Refer to table, p. 26 as extracted;

Substitute these values in the formula