Determine the Year-To-Year Percentage Annual Growth in Totalnet Sales

Determine the year-to-year percentage annual growth in totalnet sales.

In order to calculate this problem it took the previous year's netted sales and subtracted it from the following year's netted sales. Next I took the total and divided it by the previous year's netted sales. I than took that total of that and multiplied it by 100 and came up with the answer. I then rounded up if the % needed it. I did this consecutively from 2004 to 2008. An Example is noted below:

11062 - 11933 = 871

871 / 11062 = 0.078738

0.078738 * 100 = 7.8738% or 7.9%

Based only on your answers to question #1, do you think the company achieved its sales goal of +10% annual revenue growths in 2009? Determine the target revenue figure, and explain why you do or do not feel that the company hit its target.

We can figure this problem by looking at the previous year's percentages of growth. From 2004 to 2005 we see an increase of 7.9% of growth total. In 2005 to 2006 we see a decree of 15.2% in growth from 7.9% to -23.1%. From 2006 to 2007 we can see that there was another decrease of 10% from -23.1% to -33.1% making the percent of growth total a -25.2%. From 2007 to 2008 we can see an increase in growth. From the total loss of growth of -25.2%; there was an increase of 68.8% making a total growth of 2.6% increase since 2004. This 2.6% is still less than the growth was back in 2005, meaning, and the company will need to grow another 5.3% just to be even with the percent of growth back in 2005. Although 5.3% is not enough to reach the goal of a +10% growth of revenues, I do believe this company can accomplish this goal since it had an increase of 68.8% in 2008.

Use the Percentage Sales Method and a 20% 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 2% of the new sales figure.

For this problem I have used the Percentage Sales Method and a 20% increase in sales to forecast Micro Chip's Consolidated Statement of Operations for the period September 26, 2007 through September 25, 2008. I also included the 15% for taxes and the 2% for therestructuring costs. A 20% increase in sales for the following year will change the current year's calculations.

Changing 20% to a decimal:

20% =

(1+20 / 100) =

(1 + 0.2) =

1.2

Current Financial Statement Calculation for year 2007 - 2008 Predicted sales for 2008- 2009

Sales

$8334.00 $8,334.00 *1.2 =

$10,000.80 $10,000.80