Accounting and Forecasting

| January 8, 2016

Click here to download the selected financial statements for Micro Chip Computer Corporation. Answer questions 1 and 2 below based on

the financial data.
https://class.aiuniv.edu/LCMSFileShareCommon/3a6/803/25a/763/4e8/d8a/243/264/bbc/69e/c0/FINA310_U2_f1.pdf
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.

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.
Micro Chip Computer Corporation
Consolidated Statements of Operations For the period September 26, 2007 through
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

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