Financial Management 2

Unit 2-IP – FINA310-06
Financial Management
 
Click  to download 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   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.