(BQ) Part 2 book "Financial accounting" has contents: Long-Term investments & the time value of money, liabilities, stockholders’ equity, the statement of cash flows, financial statement analysis, evaluating performance - earnings quality, the income statement, & the statement of comprehensive income. | 8 ⑧ Long-Term Investments & the Time Value of Money ➤ S P O T LI GH T: Intel Holds Several Different Types of Investments Robert Clare/Photographer’s Choice/ Getty Images 428 Is it too early for you to start thinking about retirement? If you’re smart, you’ll start saving for retirement with your very first job out of college. You may use mutual funds, a savings plan at work, or make some investments on your own. The reasons people purchase long-term investments are for current income (interest and dividends) and appreciation of the investment’s value (stocks, bonds, and real estate, for example). Some very wealthy individuals invest in a wide variety of traditional and nontraditional investments in order to obtain significant influence over, or even to control, corporate entities and to maximize their wealth. Businesses such as Intel, Apple, General Electric, and Coca-Cola invest for the same reasons. In this chapter you’ll learn how to account for long-term investments of several types. We use Intel Corporation as our example company because Intel has so many interesting investments. You’ll also learn about the time value of money, which is an essential factor in valuing some types of long-term investments as well as long-term liabilities (covered in Chapter 9). What comes to mind when you think of Intel? Computer processors and microchips? Yes, but interestingly, [($3,999 million + $5,685 million + $4,424 million + $493 million)/$84,351 million] of Intel’s assets are tied up in investments in other companies. The assets section of Intel’s 2012 balance sheet reports these investments on lines 5, 6, 12, and 13. Cash and cash equivalents ($8,478 million), which also includes some investments, comprises another 10% of total assets. ● ⑧ Long-Term Investments & the Time Value of Money 429 A1 A 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 Intel Corporation Consolidated Partial Balance Sheet (Partial, Adapted) In Millions Current assets: Cash and .
