Financial Management

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 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. The file to use in answering questions 1 and 2 is ATTACHED.

1. Use the Percentage Sales Method      and a 30% 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.
2. 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.

Assignment Guidelines

• Download the financial      statements and consolidated statement of operations by clicking on the      links above in the assignment description.
• Analyze the statements and then      answer the four questions listed in the assignment description.
• Show all work including      calculations and formulas. If applicable, provide a detailed explanation      of how you used Microsoft Excel to arrive at your answers.
• Organize your answers,      mathematical calculations, and Microsoft Excel data into a Word document      of 1-2 pages.

Your submitted assignment (120 points) must include the following:

• A double-spaced Word document      of 1-2 pages that contains your answers to the four questions listed in      the assignment description, any calculations you performed, and all      formulae that were used. Also, provide your Excel data table(s) along with      an explanation of how you arrived at your answers if applicable.