Micro Chip Computer - year-to-year percentage annual growth
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Hello out there,
Can someone please assist me with figuring out the solution to the assignment below and what formulas do I use to solve the problem in Excel format. I must provide an adequate explanation of the method I used to get to my answers
I have attached the financial statement for the Micro Chip Computer Corporation and the statement for Micro Chip's Consolidated Statement of Operations for the year end:
ASSIGNMENT:
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.
Next, consider Micro Chip's Consolidated Statement of Operations for the year ended September 25, 2008 (click here to download) and answer questions 1 and 2.
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?
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Solution Summary
**Attached is the step by step solution**
Education
- Chartered Accountant (Equivalent to CPA in US), Institute of Charted Accountants of India
- Bachelor of Commerce, West Bengal University
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