Q1. Suppose, in 2013, Intel expensed all of R&D expense but 50% of the R%D was eligible for the capitalization. If you correct for the accounting R&D expense, what would the Debt to equity ratio change?
Q2. Identify the main usage of cash for investment. How can you tell such investment activities are involved in merger and acquisition activities? If there is any such merger and acquisitions, identify the related account in balance sheet and its change.
Q3. Based on the sales numbers and cost of goods sold numbers from 2012 and 2013, forecast the sales and gross margin of Intel for 2014.
Q4. Describe the general procedure of forecasting pro-forma income statement and balance sheet as we discussed in class.
Q5. What would you recommend for Amazon Shares? Buy or Sell? Why?