2. Use your accounting analysis skill to provide comment and indicate any red flags of the company Below-Reaching Target (if any) based. Use the other company as comparison.

(In millions of dollars)

2001

2000

Reaching Target, Ltd.

Sales Net income Net profit margin

Intel Corporation

Always Humble, Ltd.

Sales Net income Net profit margin

3,400 398 11.7%

6,700

1,600 23.9%

3,780 231 6.1%

6,147

1,600 26.0%

3. Analysts particularly likes to separate operating and financing activities of a firm-will be discussed more in the Financial Analysis topic.

What do you think about this statement - interest payments should not be part of cash flow from operations.