Clickhereto download theselected financial statements for Micro Chip Computer Corporation. Answer...

Question

Clickhereto download theselected financial statements for Micro Chip Computer Corporation. Answer questions 1 and 2 below based on the financial data.

Determine the year-to-year percentage annual growth in total net sales.
Based only on your answers to question #1, do you think the companyachieved its sales goal of +10% annual revenue growth in 2009? Determine the target revenue figure, and explain why you do or do not feel that the companyhitits target.
Next, consider Micro Chip's Consolidated Statement of Operations for the year ended September 25, 2008.Download the filehereand answer questions 1 and 2.

Use the Percentage Sales Method and a 25% increase in sales to forecast Micro Chip's Consolidated Statement of Operations for the period of September 26, 2008 through September 25, 2009. Assume a 15% tax rate and restructuring costs of 5% of the new sales figure.
Discuss your results from question number #1. What assumptions have you made? Do any of your assumptions seem unreasonable?
To receive full credit on this assignment, please show all work, including formulae and calculations used to arrive at the financial values. Students using Microsoft Excel must provide an adequate explanation of the methodology used to arrive at that answer.
Assignment Guidelines:

Download the financial statements and consolidated statement of operationsby clicking on the links above in the assignment description.
Analyze the statements and then answer the four questions listed in the assignment description.
Show all work including calculations and formulas. If applicable, provide a detailed explanation of how you used Microsoft Excel to arrive at your answers.
Organize your answers, mathematical calculations, and Microsoft Excel datainto a Word document of 1–2 pages. (down loadable files are in the attachement)

Robert · Accepted Answer

Running head:  FINA310 – Financial Management Methods and Analysis                       1
Unit 2-IP – FINA310-06 Financial Management 
Marsha Jones 
Computation of Year to Year % annual growth rate in net sales:- 
Year 2008 2007 2006 2005 2004 
(In millions)      
Net sales 8334 6141 9181 11933 11062 
% Annual Growth in Net sales 35.71% -33.11% -23.06% 7.87%
Note:- 
% Annual growth in sales = (Current year sales - Last year sales)/Last year sales
Computation of Average % growth rate in net sales 
Average % growth rate in net sales = Total growth rate during last 4 years/4 
Average % growth rate in net sales = (35.71%-33.11%-23.06%+7.87%)/4 
Average % growth rate in net sales = -3.15%
Based on the average % growth rate in sales we are skeptical about the company hitting 
its targeted sales in 2009. The targeted sales of the company in year 2009 would be as 
follows:- 
Targeted sales = Net sales in year 2008*(1+ Targeted Annual growth rate) 
Targeted sales = $8,

Clickhereto download theselected financial statements for Micro Chip Computer Corporation. Answer questions 1 and 2 below based on the financial data. Determine the year-to-year percentage annual...

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