Micro Chip Computer Corporation Selected Financial Data
Fiscal Years 2008 On =flans extent :hare and per bare unmet’s) 2007 2006 2005 2004 Net Sales $ 8 334 $ 6 141 $ 9 181 $ 11 933 $11 062 Net Income loss $ 811 $ 519 $ 995 $ 424 Earnings (loss) per common share: Basic _ $ 3.84 $ 5.65 $ 9.15 $ 6.89 $ 3.50 Diluted $ 4.64 $ 3.07 $ 9.15 $ 6.89 $ 3.45 Cash Dividends $ — declared per common share $ — S — $ 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 S 5,426 $ 4,60C $ 3,859 $ 3,945 $ 952 Total Assets $ 6.161 $ 5 289 $ 5.233 $ 6.364 $ 6 231 Lo a term Debt $ 330 $ 954 $ 951 $ 949 $ 303 S 3.134 $ 1,642 $ 1,200 $ 2,058 $ 2,901

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 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. Discuss your results from question number #1. What assumptions have you made? Do any of your assumptions seem unreasonable?