Reference no: EM13775389

Micro Chip Computer Corporation Selected Financial Data

Fiscal Years (a manes excel stare and per Aare anaent5)	2008	2007	2006	2005	2004
Net Sales	$ 8,334	$ 6,141	$ 9.181	$ 11,933	$11,062
Net Income (loss)	$ 811	$ 519	$ (1.2451	$ (995)	$ 424
Earnings (loss) per common share:
Basic	$ 5.65	$ 3.84	$ (9.15)	$ (6.89)	$ 3.50
Diluted	$ 4.64	$ 3.07	$ (9.15)	$ (6.89)	$ 3.45
Cash Dividends declared per common share	$ --	$ -	$ -	$ 0.12	$ 0.48
Shares used in computing earnings (loss) per share (in thousands):
Basic	143,500	135,000	136,000	144,500	121,192
Diluted	174,900	169,000	136.000	144,500	123,047
Cash, cash equivalents, and short-term investments	$ 5,426	$ 4,600	$ 3,859	$ 3,945	$ 952
Total Assets	$ 6,161	$ 5,289	$ 5.233	$ 6.364	$ 6,231
Long-term Debt	$ 300	$ 954	$ 951	$ 949	$ 303
Shareholder's Equity .	$ 3,104	$ 1,642	$ 1,200	$ 2,058	$ 2,901

The selected financial statements for Micro Chip Computer Corporation. 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 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. Download the file here and answer questions 1 and 2.

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?

To receive full credit on this assignment, please show all work, including formulae and calculations used to arrive at the financial values. Students using Microsoft Excel must provide an adequate explanation of the methodology used to arrive at that answer.