Question

Intel Corporation reported the following in its 2016 financial statements (in millions): December 31 2016 2015 Total assets $113,327 $101,459 Revenues 59,387 55,355 Research and development 12,740 12,128 Net income 10,316 11,420What is the common-size amount for Intel Corporation's research and development expense for 2016?

Answer 1

21.45%

Step-by-step explanation:

The computation of the research and development expense is shown below:

= Research and development ÷ Revenues × 100

= $12,740 ÷ $59,387 × 100

= 21.45%

In a common size income statement, each item is proportionate to the sales value that means the numerator will be the item and the denominator would be sales revenue.

All other information which is given is not relevant. Hence, ignored it