This problem is based on the 2008 annual report of Intel Corporation in the appendix.

Required:

a. Compute the following profitability measures for the year ended December 27, 2008:

1. Return on investment, based on net income (perform a DuPont analysis).

2. Return on equity, based on net income.

3. Price/earnings ratio. Use $14.18 as the year-end market price.

4. Dividend yield.

5. Dividend payout ratio.

b. Compute the following liquidity measures at December 27, 2008:

1. Working capital.

2. Current ratio.

3. Acid-test ratio.

c. Compute the following activity measures for the year ended December 27, 2008:

1. Number of days’ sales in accounts receivable, based on a 365-day year.

2. Number of days’ sales in inventory, based on a 365-day year.

3. Accounts receivable turnover.

4. Inventory turnover.

5. Turnover of net property, plant, and equipment.

d. Compute the following financial leverage measures at December 27, 2008:

1. Debt ratio.

2. Debt/equity ratio.

e. Compute the following physical measures of Intel’s profitability at December 27, 2008:

1. Net revenues per employee.

2. Operating income per employee.