Micro Chip Computer CorporationJoin now to read essay Micro Chip Computer CorporationMicro Chip Computer CorporationPart 1; Question 1:Using the financial statement that was selected, determine the year to year percentage annual growth in total sales.Part 1; Answer 1:Micro Chip Computer CorporationFiscal YearNet Sales$11,062M$11,933M$9,181M$6,141M$8,334MYear to Year Growth*−-33.00%* figured by taking one year sales minus the previous year sales divided by the same previous year sales.Part 1; Question 2:Using the year to year growth I figured in the answer to question 1, do you think that the company will hit its sales goal of +10% annual revenue growth for 2005? Determine the target revenue figure, and explain why you do or do not feel that the company can hit this target?
Part 1; Answer 2:To figure the target revenue for 2005 we take 2004 net sales and multiply that by 1.10. $8,334M * 1.10 = $9,167M.I can conclude that in 2005 the company will more than likely meet its sales goal of + 10%. Looking at the sales growth for each year I can see how this company has done in past and present years One reason why I do think they can meet their goal is because the sales did grow from 200 to 2001 by 8%. The next couple of years the company had a sharp decrease which was more than likely a result of economic troubles. In year 2004 sales increased again exceeding the expectations which show great promise that the annual revenue growth for 2006 can be attained.
Part 2; Question 1:Based on the consolidated statement of operations for the year ending September 25, 2004, use the percentage sales method plus an increase of 20% in sales to forecast the consolidated statement of operations for the period September 26, 2004 through September 25, 2005, with the assumption of a 15% tax rate and restructuring costs of 2% of the new sales figure.
Part 2; Answer 1:Micro Chip Computer Corporation Consolidated StatementConsolidated Statements of Operations For the period September 26, 2004 throughSeptember 25, 2005.Sales$10,000.80M$8.334M + 20% = $10,000.80MCost of Sales$6,549.60M$5,458M + 20% = $6,549.60MGross Margin$3,451.20M$10,000.80M – $6.549.60M = $3,451.20MOperating expenses:R & D$630M$525M + 20% = $630MSelling, General, and Administrative$829.20M$691M + 20% = $829.20MIn-process R & DRestructuring costs$200.02M$10,000.80M * 2% = $200.02MTotal Operating Exp$1,659.22M$630M + $829.2M + $200.02M = $1,659.22M = $1,659.22MOperating income$1,791.98M$3,451.20M – $1,659.22M = $1.791.98MTotal interest and other Income net$232.80M$194M + 20% = $232.80MIncome before provision for Income taxes$2,024.78M$1,791.98M + $232.80M = $2,0274.28MProvision for income
*$2,938.70M$3,429.50M ࢙ $3,429.50 = $2,938.70Total $0.0014*Cost of production $0.0004*Cost of sales $0.0010*Cost of marketing $0.0003*Cost of services $0.0014*Cost of warranty $0.0031*Cost of materials $0.0016*Cost of parts – $0.0016$0.0015 +$0.0015*Cost of shipping $0.0003*Cost of materials$0.0013*Cost of service.**$0.0001*Cost of the customer’s bill and service costs $0.0014*Cost of goods that the customer bought, $0.0013*Cost of sales $0.0013*Cost of hardware and equipment $0.0014*Cost of service $0.0010*Cost of services $0.0014*Cost of insurance – $0.0010**Costs that the customer purchased, $0.0014*Cost of services $0.0014*Cost of equipment and equipment $0.0014*Cost up-to-date bills**Cost of costs due for services or goods $0.0013*Cost of services $0.0013*Cost of shipping $0.0010*Cost of shipping $0.0010*Cost of repairs, replacement or replacement of hardware equipment $0.0013*Cost of hardware $0.0013*Cost of support: costs for work performed $0.0011*Cost of services $0.0011*Cost of expenses for customer support services – $0.0011*Cost of repairs, replacement or replacement of hardware equipment $0.0013*Cost of services $0.0013*Cost of other costs and costs – $0.0013-$0.0011*Cost of services for additional services added to customer�s price list at purchase and added as cost to customer in business account or to customer�s plan.**Costs for services added to account with a cost-sharing allowance in the account balance. -$0.0011*Cost of expenses for services or goods incurred by the customer on the account as part of the cost-sharing allowance at purchase