B calculate the incremental operating cash inflows

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Unformatted text preview: which alternative appears to be better? Why? WEB EXERCISE WW W Go to the Web site www.reportgallery.com. Click on Reports, at the top of the page, navigate to the listing for Intel Corp., and click on Annual Report. This takes you to an investor relations page; select the most recent annual report. Answer the following questions using information in various report sections, such as Intel Facts and Figures, Financial Summary, Consolidated Balance Sheets, and Consolidated Statements of Cash Flow. (These may change from year to year and may be listed in the left navigation bar.) 1. How much did Intel spend on capital expenditures for each of the past 5 years? 2. Did capital expenditures increase or decrease? 3. Is Intel’s capital spending consistent or erratic? CHAPTER 8 Capital Budgeting Cash Flows 393 4. What were the major uses of capital spending for the most recent 2 years? 5. What were the account balances for property, plant, and equipment (PP&E) for the most recent 2 years (found on the Consolidated Balance Sheets)? 6. What percent of PP&E does Intel replace every year? (Hint: For a rough estimate, divide capital expenditures for a year by that year’s PP&E balance.) 7. Select one of the following companies, and use the Reportgallery site to access its annual report. Research its capital spending patterns and compare them to Intel’s. a. Abbot Laboratories b. Southwest Airlines c. Ford Motor Company Remember to check the book’s Web site at www.aw.com/gitman for additional resources, including additional Web exercises....
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