Question

2013 2012 2011 8,478 $ 5,065 5,498 9,620 11,005 12,942 5,141 6,357 1,102 1,053 6,790 1,118 240 (49) 1,242 (425) (142) 1,165 (141) (37) 923 (112) (164) 790 (900) (242) (678) INTEL CORPORATION CONSOLIDATED STATEMENTS OF CASH FLOWS Three Years Ended December 28, 2013 (In Millions) Cash and cash equivalents, beginning of year Cash flows provided by (used for) operating activities: Net income Adjustments to reconcile net income to net cash provided by operating activities: Depreciation Share-based compensation Restructuring and asset impairment charges Excess tax benefit from share-based payment arrangements Amortization of intangibles (Gains) losses on equity investments, net (Gains) losses on divestitures Deferred taxes Changes in assets and liabilities: Accounts receivable Inventories Accounts payable Accrued compensation and benefits Income taxes payable and receivable Other assets and liabilities Total adjustments Net cash provided by operating activities Cash flows provided by (used for) investing activities: Additions to property, plant and equipment Acquisitions, net of cash acquired Purchases of available-for-sale investments Sales of available-for-sale investments Maturities of available-for-sale investments Purchases of trading assets Maturities and sales of trading assets Collection of loans receivable Origination of loans receivable Investments in non-marketable equity investments Proceeds from the sale of IM Flash Singapore, LLP assets and certain IM Flash Technologies, LLC assets Return of equity method investments Purchases of licensed technology and patents Proceeds from divestitures 271 563 267 155 1,019 865 11,156 20,776 (176) (626) 67 192 229 (243) 596 (95) 660 187 8,021 20,963 7,879 18,884 (10,711) (925) (12,493) 934 8,336 (16,718) 13,677 132 (200) (11,027) (638) (8,694) 2,282 5,369 (16,892) 15,786 149 (216) (475) 605 137 (815) (10,764) (8,721) (11,230) 9,076 11,029 (11,314) 11,771 134 (206) (693) (440) 45 263 (66) —

Analyze the Consolidated Statement of Cash Flows for Intel for 2013, 2012, and 2011.

Answer 1

The analysis of the Cash flows of Intel is as follows:

1) The company’s net income has been reducing over the years. It reduced from $12942m to $9620m in 2013.

2) The Intel’s has good cash flow from operation during the years. A constant cash flow of around $20000m per year from operation.

3) The collection from the debtors has been improving since 2011.

4) Due to growth in business, good inventory has been held in the company.

5) Company is also getting higher credit facilities from creditors.

6) Good cash flow will allows company to in trading securities. Cash investment has raised from $10301m in 2011 to $18073m in 2013.

7) The long term debt has been raised to bring leverage in the company and reduce the outstanding share capital through re-purchasing the common stock.

8) Overall, the company is doing well in cash flows in recent years.

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