Micro Chip Computer Corporation: Annual Growth in Total Net Sales
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Based on the financial data provided in the attached documents, answer the questions which are listed below.
Question 1: 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 2005? 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, 2004 and answer questions 1 and 2.
Question 1: 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, 2004 through September 25, 2005. 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
This solution provides a step-by-step explanation and detailed calculations for the following questions regarding annual growth for the Micro Chip Computer Corporation. The solution is provided in an Excel attachment file.
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