ANALYZING GROWTH. Comparative financial statements for Intel Corporation (the manufacturer of microprocessors) follow:

REQUIRED:

1. Prepare component percentage income statements for 1993, 1992, and 1991. 2. Using the component percentage and comparative income statements, indicate why Intel's profits increased more rapidly than sales for 1993 and 1992. 3. Prepare component percentage balance sheets for 1993 and 1992. 4. Did the proportion of assets invested in the various classes of assets change signif- icantly from 1992 to 1993? 5. How has Intel financed its growth in assets? 6. Did the income statement change as much between 1992 and 1993 as the balance sheet?

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CONSOLIDATED STATEMENTS OF INCOME INTEL CORPORATION Three Years Ended December 25, 1993 (in millions) 1993 1992 1991 Net revenues $8,782 $5,844 $4,779 Cost of sales 3,252 2,557 2,316 Research and development 970 780 618 Marketing, general and administrative 1,168 1,017 765 Operating costs and expenses 5,390 4,354 3,699 Operating income 3,392 1,490 1,080 Interest expense (50) (54) (82) Interest income and other, net 188 133 197 Income before taxes 3,530 1,569 1,195 Provision for taxes 1,235 502 376 Net income $2,295 $1,067 $ 819 (continued on next page)