Congratulations, you are in the final stage of completing Intermediate Accounting I which means that you now have a strong foundation in financial accounting principles and the elements of the financial statements. You will be amazed at how much you actually know and understand about accounting.

Due Date: Submit a printed hard copy on Tuesday, December 4^th at the beginning of class.

NO LATE SUBMISSIONS WILL BE ACCEPTED.

Instructions: Use the financial statements from the annual report for the year ended 12/30/2017 for INTEL Corporation. The Annual Report is on MOODLE. Answer the questions after each question. Use a different font to distinguish your answer from the question. All answers should be in your own words. Do not cut and paste from the annual report. Answers will be graded for content and written communication skills. Use complete sentences in answering questions.

MAKE A NOTATION HERE IF THE DOLLAR AMOUNTS ARE STATED IN MILLIONS.

1. Who are the external auditors for INTEL? What does their Report of Independent Registered Public Accounting firm indicate about the amounts represented in the companys financial statements?

2. What specific title does INTEL use for its income statement? What type of income statement do they issue? (multi-step, singlestep) Explain.

3. How does Intel define Cash Equivalents? Is this consistent with the textbook?

4. What is the amount of cash and cash equivalents reported for the year ended at 12/31/2016 and 12/30/2017? By how much has cash and cash equivalents increased/decreased? Show calculations.

5. Create a table illustrating the amount INTEL for net cash flows from operating, investing, and financing activities in its statement of cash flow for the year ended 12/30/2017. Show calculations. Compare your answers to question 4.

6. What is INTELs cost flow assumption for valuing inventory (LIFO, FIFO, average-cost, specific identification)? How are INTELs inventories valued (cost, market, or other method)?

7. What % of their total inventory is raw materials, work in process, and finished goods as of 12/30/2017?

8. Which depreciation method is used for PP& E? What estimates are made for the useful life of depreciable assets?

9. What was total depreciation expense in 2017? Where were these amounts reported in the financial statements?

10. What was the major component of total gross PP&E? What was its amount and what % was it of the total gross amount?

11. What % of total gross PP&E has been depreciated?

12. What amount of total dividends was paid for the year ended 12/30/2017?

13. Did INTEL purchase any property, plant and equipment during the year ended 12/30/2017? If so, what were the dollar amount?

14. What was INTELs current ratio and working capital as of 12/30/2017?

15. In a two detailed paragraph, indicate a couple of interesting items you learned while reading this annual report.