The $2013$ Intel Form $10-$K can be found at the following website www$.$pearsonhighered.com$/$Fraser

A$.$ using consolidated statements of operations, analyze the profitability of Intel by preparing a common size income statement for the past three years. In addition, calculate sales growth and operating expense growth for each two year period presented, as well as effective tax rates for all three years

B$.$ Using the consolidated statements of stockholders equity for Intel, explain the key reasons for the change in common stock, accumulated other comprehensive income, and retained earnings accounts.

Table of Contents

INTEL CORPORATION

CONSOLIDATED STATEMENTS OF INCOME

Three Years Ended December $28,2013($In Millions, Except Per Share Amounts$)$

Net revenue

Cost of sales

Gross margin

Research and development

Marketing, general and administrative

Restructuring and asset impairment charges

Amortization of acquisition$-$related intangibles

Operating expenses

Operating income

Gains $($losses$)$ on equity investments, net

Interest and other, net

Income before taxes

Provision for taxes

Net income

Basic earnings per common share

Diluted earnings per common share

Weighted average common shares outstanding:

Basic

Diluted

$\backslash$table$[[2013,2012],[$$$,52,708,$$$,53,341],[,21,187,,20,190],[,31,521,,33,151],[,10,611,,10,148],[,8,088,,8,057],[,240,,],[,291,,308],[,19,230,,18,513],[,12,291,,14,638],[,471,,141],[,(151),,94],[,12,611,,14,873],[,2,991,,3,868],[$$$,9,620,$$$,11,005],[$$$,1\mathrm{.}94,$$$,2\mathrm{.}20],[$$$,1\mathrm{.}89,$$$,2\mathrm{.}13],[,4,970,,4,996],[,5,097,,5,160]]$

$\backslash$table$[[$$$2011,],[,53,999],[,20,242],[,33,757],[,7,350],[,-670],[,260],[,16,280],[,17,477],[,112],[,192],[,17,781],[,4,839],[$$$,12,942],[$$$,2\mathrm{.}46]]$

See accompanying notes.