. Intel Problem The 2004 Intel Annual Report can be found at the following Web site: www.prenhall.com/ fraser.

(a) Using the consolidated statements of operations, analyze the profitability of Intel by preparing a common-size income statement and by calculating any other ratios deemed necessary for the past three years. Be sure to calculate sales growth and operating expense growth for each two-year period presented.

(b) Using the consolidated statements of stockholders' equity for Intel, explain the key reasons for the changes in the common stock, accumulated other comprehensive income, and retained earnings accounts. Evaluate these changes.