?Note to Instructor:  The purpose of this case is to familiarize students with information about an organization’s capital expenditures that may appear in their annual report.  This solution uses Intel’s 2008 annual report, which was the most recent annual report available at the time we were preparing the 9th edition ofAccounting: What the Numbers Mean.  Over the years, Intel has been very consistent in the structure of its annual report and the location sequence of information presented.  Hence, it should be fairly easy for you to update this solution for annual reports issued after 2008.

?For the year 2008:(Note: Dollar amounts in millions)

a.?1.?Additions to property, plant, and equipment were $5,197 and Acquisitions, net of cash acquired were $16 in 2008 (Intel Annual Report p. 58).

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?2.?Additions to property, plant and equipment were $5,000 and $5,860 in 2007 and 2006, respectively. Acquisitions, net of cash acquired were $76 and $0 in 2007 and 2006, respectively. The trend indicates that Intel has been fairly consistent in capital expenditures for property, plant, and equipment from 2006 to 2008 and increased acquisitions in 2007 and 2008 over 2006 (Intel Annual Report p. 58).

Intel’s end of year cash amount was $3,350, $7,307, and $6,598 in 2008, 2007, and 2006, respectively. This trend indicates that over the three periods, the general cash position has increased and then decreased in 2008 which is primarily attributed to the cash provided by operating activities (Intel Annual Report p. 58).