IN-CLASS EXERCISE: Analyzing Income Statement and CFS

Read over the financial tables given below. After analyzing the tables, decide
which company you would prefer to invest in. Be prepared to give your reason.

Intel Corporation is a semiconductor chip maker. The Company is engaged in

developing advanced integrated digital technology products, primarily integrated circuits,
for industries, such as computing and communications. Its primary component products
include microprocessors, chipsets, wired and wireless connectivity. (hoovers.com)

Intel Corp. INCOME STATEMENT 2008 2007 2006

Revenue ($mil.) 37,586.0 38,334.0 35,382.0
Gross Profit ($mil.) 20,844.0 19,904.0 18,218.0
Operating Income ($mil.) 7,694.0 9,181.0 7,092.0
Total Net Income ($mil.) 5,292.0 6,976.0 5,044.0
EPS 0.92 1.18 0.86
STRENGTHS:
Revenu and Gross profit of 2008 is going up compare to 2007. It raised up 2952
million US dollar (8.34%) .

WEAKNESSES
Revenu,Operating Income,TNI of 2008 is going down compare to 2007.

Intel Corp. CASH FLOW STATEMENT Dec08 Dec07 Dec06

Net Operating Cash Flow 10,926.0 12,625.0 10,620.0
Net Investing Cash Flow (5,865.0) (9,926.0) (4,907.0)
Net Financing Cash Flow (9,018.0) (1,990.0) (6,439.0)
STRENGTHS:
Investing Cash Flow of 2007 was $ - 9,926 million . but ICF of 2008 is $ - 5,865
million . It means that there are enough money in company compare to last
year.(Dec07)

WEAKNESSES:
Financing Cash Flow of 2008 is going up greatly compare to 2007.

Advanced Micro Devices, Inc. is a global semiconductor company with facilities

around the world. The Company offer x86 microprocessors, for the commercial and
consumer markets, embedded microprocessors for commercial, commercial client and
consumer markets and chipsets for desktop and notebook personal computers (PCs),
professional workstations and servers. (hoovers.com)

AMD INCOME STATEMENT 2008 2007 2006

Revenue ($mil.) 5,808.0 6,013.0 5,649.0
Gross Profit ($mil.) 2,320.0 2,262.0 2,793.0
Operating Income ($mil.) (1,980.0) (2,799.0) (17.0)
Total Net Income ($mil.) (3,098.0) (3,379.0) (166.0)
EPS (5.10) (6.06) (0.34)

STRENGTHS:
In the case of AMD, Revenue of 2008 rose up compare to 2006 slightly.

WEAKNESSES:
Otherwise, Gross Profit of 2008 is much lower than 2006. Also, Operating Income
and Total Net Income is minus. Minus of numeral value is increasing dramatically.
AMD CASH FLOW STATEMENT Dec08 Dec07 Dec06
Net Operating Cash Flow (692.0) (310.0) 1,287.0
Net Investing Cash Flow (27.0) (1,675.0) (4,303.0)
Net Financing Cash Flow 220.0 2,037.0 3,763.0

STRENGTHS:
None.

WEAKNESSES:

Investing Cash Flow is minus Dec06, Dec07,Dec08. NFCF is decrasing every year.