Determine the year-to-year percentage annual growth

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Reference no: EM13741338

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 achieved 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 hit its target.

Next, consider Micro Chip's Consolidated Statement of Operations for the year ended September 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, and Administrative	$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

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?

Reference no: EM13741338

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