# Year-to-year percentage annual growth in total net sales

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 company will hit 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 company can hit this target.
Part 2
Next, consider Micro Chip's Consolidated Statement of Operations for the year ended September 25, 2008
Use the Percentage Sales Method and a 20% increase in sales to forecast Micro Chip's Consolidated Statement of Operations for the period September 26, 2007 through September 25, 2008. Assume a 15% tax rate and restructuring costs of 2% of the new sales figure.
Discuss your results from question number #1. What assumptions have you made? Do any of your assumptions seem unreasonable?

This question has the following supporting file(s):

• Micro Chip Computer Corp.xls
• FIN410_U2_ips2_v3.pdf
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Solution Summary

Response provides the steps to compute year-to-year percentage annual growth in total net sales

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• ResponseMicro+Chip+Computer+Corp(1).xls

Extracted Content from Question Files:

• Micro Chip Computer Corp.xls

Micro Chip Computer Corporation
Consolidated Statements of Operations For the period September 26, 2007 through Sept 25, 2008

Sales \$ 8,334.00
Cost of Sales \$ 5,458.00
Gross Margin \$ 2,876.00
Operating expenses
R&D \$ 525.00
Selling, General & Admin \$ 691.00
In -process R & D
Restructuring costs
Total Operating Exp \$ 1,216.00
Operating Income \$ 1,660.00
Total interest and other
Income net \$ 194.00
Income before provision for
Income taxes \$ 1,854.00
Provision for income
Taxes (15%) \$ 278.10
Net Income \$ 1,575.90
gh Sept 25, 2008

• FIN410_U2_ips2_v3.pdf

Micro Chip Computer Corporation
Selected Financial Data

2008 2007 2006 2005 2004