The complete annual report, including the notes to the financial statements, is available at the companys website.

Instructions

A. Answer the following questions using TSMCs (Taiwan Semiconductor Manufacturing Company) consolidated income statement.

a. What was the percentage change in (1) sales (net revenue) and in (2) net income from 2018 to 2019?

b. What was the companys gross profit rate in 2018 and 2019?

c. What was the companys percentage of net income to net sales in 2018 and 2019? Comment on any trend in this percentage.

B. Answer the following questions using TSMCs consolidated financial statements.

a. What was the total cost and book value of property, plant, and equipment at December 31, 2018?

b. What method or methods of depreciation are used by the company for financial reporting purpose?

c. What was the amount of depreciation expense for each of the year 2018 and 2019?

d. Where does the company disclose its intangible assets, and what types of intangibles did it have at December 31, 2018?