Intel Corporation is an American multinational semiconductor chip maker corporation headquartered in Santa Clara, California. Intel is the largest and highest valued semiconductor chip maker, based on revenue. Intel also makes motherboard chipsets, network interface controllers and integrated circuits, flash memory, graphic chips, embedded processors and other devices related to communications and computing. Read the letters from the CEO and Chairman and discuss any information learned from this letter that might be useful to an analyst.
Intel contributing to revenue of $43. 6 billion, up 24 percent compared to 2009. The operating income for 2010 rose to 15. 6 billion, net income to 11. 5 billion, and earnings per share to 2. 01. The CEO has continued focus on factory reuse and efficiency drove costs down again in 2010. The chairman states, in 2010, Intel repurchased 70 million shares of common stock for 1. 5 billion, and the total dividend payout was 3. 5 billion, including a 12. percent increase in there quarterly dividend effective the first quarter of 2010.
What type of audit opinion was given for the financial statements and the internal financial controls of Intel? The representations and warranties may not describe the actual state of affairs as of date that these representations and warranties were made or at any other time. Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements.
Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. Explain the key items discussed in the audit report. Read the Management discussion and analysis (MD &A). Discuss whether the items that should be addressed in the MD&A are included. Support your answer with examples from the Intel MD&A. No it was not addressed in the MD&A. here should have been net sales, for example net sales is the total sales over all.
Gross profits is the total after net sales and cost of goods sold are subtracted. After reading the MD&A, discuss the future prospects of Intel. Do you have any concerns? If so, describe those concerns. After analyzing the MD&A, I found that the prospect of the company looks great. They have projections of forward-looking statements, anticipated growth and trends. They show characterizations of future events, I have no concerns regarding Intel’s corporation.