Growth in sales / percentage of sales method
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Financial statements for Micro Chip Computer Corporation. Need to answer questions 1 and 2 below based on the financial data.
1. Determine the year-to-year percentage annual growth in total net sales.
2. 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.
See Attachment: Item 1 Select Financial Statement
Part 2 of Project
Consider ing Micro Chip's Consolidated Statement of Operations for the year ended September 25, 2008 then answer questions 1 and 2.
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, 2007 through September 25, 2008. Assume a 15% tax rate and restructuring costs of 2% of the new sales figure.
2.Discuss your results from question number #1. What assumptions have you made? Do any of your assumptions seem unreasonable?
See Attachment: Consolidated Statement of Operation
To get top credit must show all work, including formulae and calculations used to arrive at financial values. If we use Excel must provide an adequate explanation of the methodology used to arrive at that answer.
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Solution Summary
The solution explains how to calculate the growth in sales and the use of percentage of sales method in making a proforma income statement
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