Question
Assume the following are the income statement and balance sheet for Intel Corporation. INTEL CORPORATION Consolidated Statements of Income Year Ended (In millions) Dec. 25,
Assume the following are the income statement and balance sheet for Intel Corporation.
INTEL CORPORATION Consolidated Statements of Income | |||
---|---|---|---|
Year Ended (In millions) | Dec. 25, 2010 | Dec. 26, 2009 | Dec. 27, 2008 |
Net revenue | $ 44,423 | $ 35,127 | $ 37,586 |
Cost of sales | 15,132 | 15,566 | 16,742 |
Gross margin | 29,291 | 19,561 | 20,844 |
Research and development | 6,576 | 5,653 | 5,722 |
Marketing, general and adminstrative | 6,309 | 7,931 | 5,452 |
Restructuring and asset impairment charges | -- | 231 | 710 |
Amortization of acquisition-related intangibles | 18 | 35 | 6 |
Operating expenses | 12,903 | 13,850 | 11,890 |
Operating income | 16,388 | 5,711 | 8,954 |
Gains (losses) on equity method investments, net* | 117 | (147) | (1,380) |
Gains (losses) on other equity investments, net | 231 | (23) | (376) |
Interest and other, net | 109 | 163 | 488 |
Income before taxes | 16,845 | 5,704 | 7,686 |
Provisions for taxes | 4,581 | 1,335 | 2,394 |
Net income | $ 12,264 | $ 4,369 | $ 5,292 |
*This should be considered as operating income.
INTEL CORPORATION Consolidated Balance Sheets | ||
---|---|---|
As of Year-Ended (In millions, except par value) | Dec. 25, 2010 | Dec. 26, 2009 |
Assets | ||
Current assets | ||
Cash and cash equivalents | $ 5,498 | $ 3,987 |
Short-term investments | 11,294 | 5,285 |
Trading assets | 5,093 | 4,648 |
Accounts receivables, net | 2,867 | 2,273 |
Inventories | 3,757 | 2,935 |
Deferred tax assets | 1,888 | 1,216 |
Other current assets | 1,614 | 813 |
Total current assets | 32,011 | 21,157 |
Property, plant and equipment, net | 17,899 | 17,225 |
Marketable equity securities | 1,008 | 773 |
Other long-term investments** | 3,026 | 4,179 |
Goodwill | 4,531 | 4,421 |
Other long-term assets | 5,111 | 5,340 |
Total assets | $63,586 | $53,095 |
Liabilities | ||
Currnet liabilities | ||
Short-term debt | $38 | $172 |
Accounts payable | 2,190 | 1,883 |
Accrued compensation and benefits | 2,888 | 2,448 |
Accrued advertising | 1,007 | 773 |
Deferred income on shipments to distributors | 622 | 593 |
Other accrued liabilities | 2,482 | 1,722 |
Total current liabilities | 9,227 | 7,591 |
Long-term income taxes payable | 190 | 193 |
Long-term debt | 1,677 | 2,049 |
Long-term deferred tax liabilities | 926 | 555 |
Other long-term liabilities | 1,236 | 1,003 |
Total liabilities | 13,256 | 11,391 |
Stockholders' equity: | ||
Preferred stock, $0.001 par value | -- | -- |
Common stock, $0.001 par value, 10,000 shares authorized; 5,581 issued and 5,511 outstanding and capital in excess of par value | 16,178 | 14,993 |
Accumulated other comprehensive income (loss) | 333 | 393 |
Retained earnings | 33,819 | 26,318 |
Total stockholders' equity | 50,330 | 41,704 |
Total liabilities and stockholders' equity | $ 63,586 | $ 53,095 |
** These investments are operating assets as they relate to associated companies. (a) Compute Intel's net operating assets (NOA) for year-end 2010. 2010 NOA = $Answer
(b) Compute net operating profit after tax (NOPAT) for 2010, assuming a federal and state stat utory tax rate of 37%.
HINT: Gains/losses on equity method investments are considered operating income. Round your answer to the nearest whole number. 2010 NOPAT = $Answer
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