1) using the consolidated statements of operations, analyze the profitability of Intel by preparing a common-size income statement for the past 3 years. in addition, calculate sales growth and operating expense growth for each two years period presented, as well as effective tax rates for all three years.

2) using the consolidated statements of stockholders equity for intel, explain the key reasons for the changes in the common stock, accumulated other comprehensive, and retained earnings accounts.

INTEL CORPORATION CONSOLIDATED STATEMENTS OF INCOME Net revenue 3 52,708 $ 53,341 $ 53,998 Cost of sales 21,187 20,190 20,242 Gross margin 31,521 33,151 33,757 Research and development 10.611 10,148 8,350 Marketing. general and administrative 8.088 8,057 7.670 Restructuring and asset impairment charges 240 Amortization of acquisition-related intangibles 291 308 260 Operating expenses 19,230 18,513 16,280 Operating income 12,291 14,638 17,477 Gains (losses) on equity investments, net 471 141 112 Interest and other. net (151) 94 192 Income before taxes 12,611 14,873 17,781 Provision for taxes 2.991 3,868 4,839 Net income 5 9,620 $ 11 005 $ 12 942 Basic earnings per common share 1134 32? 32? Diluted earnings per common share W W W Weighted average common shares outstanding: Basic 4, 970 4, 996 5, 256 Diluted W 5 150 =5 411 INTEL CORPORATION CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME Net Income 5 9,820 5 11,005 $ 12,942 Other comprehensive income. net of tax: Change in net unrealized holding gains (losses) on available-for- sale investments 1.181 470 (170) Change in net deferred tax asset valuation allowance (26) (1 1) (99) Change in net unrealized holding gains (losses) on derivatives (89) 85 (119) Change in net prior service costs 18 4 Change in actuarial valuation 520 (172) (588) Change in net foreign currency translation adjustment 38 10 (142) Other comprehensive Income (loss) 1,842 382 (1 .114) Total comprehenslve Income $ 1 1,282 8 1 1 ,387 $ 1 1 ,828 INTEL CORPORATION CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY Common Stock and Capital in Excess of Par Value Accumulated Other Three Years Ended December 28, 2013 Number of Retained (In Millions, Except Per Share Amounts) Shares Amount Comprehensive Income (Loss) Earnings Total Balance as of December 25, 2010 5,511 $ 16,178 $ 333 $ 32,919 $ 49,430 Components of comprehensive income, net of tax: Net income 12,942 12,942 Other comprehensive income (loss) (1,114) (1, 114) Total comprehensive income 11,828 Proceeds from sales of shares through employee equity incentive plans, net tax deficiency, and other 142 2,019 - 2,019 Assumption of equity awards in connection with acquisitions 48 48 Share-based compensation 1,053 1,053 Repurchase of common stock (653) (2,262) (12,078) (14,340) Cash dividends declared ($0.7824 per common share) (4, 127) (4, 127) Balance as of December 31, 2011 5,000 17,036 (781) 29,656 45,911 Components of comprehensive income, net of tax: Net income 11,005 11,005 Other comprehensive income (loss) 382 382 Total comprehensive income 11,387 Proceeds from sales of shares through employee equity incentive plans, net excess tax benefit, and other 148 2,257 2,257 Share-based compensation 1, 108 1, 108 Repurchase of common stock (204) (937) (4, 173) (5, 110) Cash dividends declared ($0.87 per common share) (4,350) (4,350) Balance as of December 29, 2012 4,944 19,464 (399 32, 138 51,203 Components of comprehensive income, net of tax: Net income 9,620 9,620 Other comprehensive income (loss) 1,642 1,642 Total comprehensive income 11,262 Proceeds from sales of shares through employee equity incentive plans, net tax deficiency, and other 130 1,593 1,593 Share-based compensation 1,117 - 1, 117 Repurchase of common stock (107) (638) (1,802) (2,440) Cash dividends declared ($0.90 per common share) (4,479) (4,479) Balance as of December 28, 2013 4,967 21,536 $ 1,243 $ 35,477 $ 58,256