How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask mit2008 Your Own Question

mit2008
mit2008, Graduate Student
Category: Homework
Satisfied Customers: 97
Experience:  graduate student; homework tutor
Type Your Homework Question Here...
mit2008 is online now
A new question is answered every 9 seconds

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

Resolved Question:

1. Determine the year-to-year percentage annual growth in total net sales.
2. Based only on your answers to question #1, do you think the company will hit its sales goal of +10% annual revenue growth in 2005? Determine the target revenue figure, and explain why you do or do not feel that the company can hit this target.
Next, consider Micro Chip's Consolidated Statement of Operations for the year ended September 25, 2004 (click here to download) and answer questions 1 and 2.

1. Use the Percentage Sales Method and a 20% increase in sales to forecast Micro Chip's Consolidated Statement of Operations for the period September 26, 2004 through September 25, 2005. Assume a 15% tax rate and restructuring costs of 2% of the new sales figure.
2. Discuss your results from question number #1. What assumptions have you made? Do any of your assumptions seem unreasonable?
Please show all work, including formulae and calculations used to arrive at value.

 

Micro Chip Computer Corporation

Selected Financial Data (in millions except shares and per share amounts)

Fiscal year 2004 2003 2002 2001 2000

Net Sales $ 8,334 $ 6,141 $ 9,181 $ 11,933 $11,062

Net Income (loss) $ 811 $ 519 $(1,245) $ (995) $ 424

Earnings (loss)

per common

share:

Basic $ 5.65 $ 3.84 $ (9.15) $ (6.89) $ 3.50

Diluted $ 4.64 $ 3.07 $ (9.15) $ (6.89) $ 3.45

Cash Dividends

declared per

common share $ -- $ -- $ -- $ 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 $ 5,426 $ 4,600 $ 3,859 $ 3,945 $ 952

Total Assets $ 6,161 $ 5,289 $ 5,233 $ 6,364 $ 6,231

Long-term Debt $ 300 $ 954 $ 951 $ 949 $ 303

Shareholder's

Equity $ 3,104 $ 1,642 $ 1,200 $ 2,058 $ 2,901

Micro Chip Computer Corporation

Consolidated Statements of Operations For the period September 26, 2003 through

September 25, 2004

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

 

Submitted: 6 years ago.
Category: Homework
Expert:  mit2008 replied 6 years ago.
THIS ANSWER IS LOCKED!
You can view this answer by clicking here to Register or Login and paying $3.
If you've already paid for this answer, simply Login.
mit2008, Graduate Student
Category: Homework
Satisfied Customers: 97
Experience: graduate student; homework tutor
mit2008 and 6 other Homework Specialists are ready to help you
Customer: replied 6 years ago.
In the first question, section 1. I see that it was done in excel, but what formula's would you use to get the answers you have?
Expert:  mit2008 replied 6 years ago.
Here is the Excel table. Please click on the link and then the cells in the last column to see the results. Thanks. Please leave your feedback.
Customer: replied 6 years ago.
Thank you anyway, the excel table does not help me what I am looking for is the actual formula used to calculate the increase or decrease in sales.
Expert:  mit2008 replied 6 years ago.
Ok I will put the formula in writing in a few minutes.
Expert:  mit2008 replied 6 years ago.

To illustrate how the Excel works: If you click on 7.9% in the Excel table, it gives a formula of =B3/B2-1, which means you use the number in cell B3 (11,933) divided by the number in cell B2 (11,062). The resulting number 1.079 - 1 gives 0.079 which is 7.9%.

If you decide not to apply Excel, you can also determine the year-to-year percentage annual growth in total net sales: For example from 2000 to 2001, the percentage is (11933/11062)-1 =0.079 or 7.9%. NOTE: (11933/11062)-1 is equivalent to (11933-11062)/11062 *100%=7.9%. Here 11933-11062 is the growth for year 2001, which when divided by the sales number from year 2000 (11062) times 100% gives the percentage annual growth. Please let me know.

Customer: replied 6 years ago.
Thank you so very much, I think my brain wasn't working right, because a lightbulb just turned on. Thank you again for your help!!

JustAnswer in the News:

 
 
 
Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.
 
 
 

What Customers are Saying:

 
 
 
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C. Freshfield, Liverpool, UK
< Last | Next >
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C. Freshfield, Liverpool, UK
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex Los Angeles, CA
  • Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult. GP Hesperia, CA
  • I couldn't be more satisfied! This is the site I will always come to when I need a second opinion. Justin Kernersville, NC
  • Just let me say that this encounter has been entirely professional and most helpful. I liked that I could ask additional questions and get answered in a very short turn around. Esther Woodstock, NY
  • Thank you so much for taking your time and knowledge to support my concerns. Not only did you answer my questions, you even took it a step further with replying with more pertinent information I needed to know. Robin Elkton, Maryland
  • He answered my question promptly and gave me accurate, detailed information. If all of your experts are half as good, you have a great thing going here. Diane Dallas, TX
 
 
 

Meet The Experts:

 
 
 
  • Manal Elkhoshkhany

    Tutor

    Satisfied Customers:

    4520
    More than 5000 online tutoring sessions.
< Last | Next >
  • http://ww2.justanswer.com/uploads/BU/BusinessTutor/2012-2-2_115741_Kouki2.64x64.jpg Manal Elkhoshkhany's Avatar

    Manal Elkhoshkhany

    Tutor

    Satisfied Customers:

    4520
    More than 5000 online tutoring sessions.
  • http://ww2.justanswer.com/uploads/LI/lindaus/2012-6-10_04811_IMG20120609164157.64x64.jpg Linda_us's Avatar

    Linda_us

    Finance, Accounts & Homework Tutor

    Satisfied Customers:

    3121
    Post Graduate Diploma in Management (MBA)
  • http://ww2.justanswer.com/uploads/ComputersGuru/2010-02-13_051118_Photo41.JPG LogicPro's Avatar

    LogicPro

    Engineer

    Satisfied Customers:

    3035
    Expert in Java C++ C C# VB Javascript Design SQL HTML
  • http://ww2.justanswer.com/uploads/lanis/2009-4-1_233717_phput9xef_c1pm.jpg Lani S.'s Avatar

    Lani S.

    Tutor

    Satisfied Customers:

    2457
    Registered Nurse, Internet Researcher, Private Tutor
  • http://ww2.justanswer.com/uploads/chooser77/2009-08-18_162025_Chris.jpg Chris M.'s Avatar

    Chris M.

    M.S.W. Social Work

    Satisfied Customers:

    2341
    Master's Degree, strong math and writing skills, experience in one-on-one tutoring (college English)
  • http://ww2.justanswer.com/uploads/JawaadAhmed/2009-6-27_12137_SIs_SHadi.jpg F. Naz's Avatar

    F. Naz

    Chartered Accountant

    Satisfied Customers:

    1975
    Experience with chartered accountancy
  • http://ww2.justanswer.com/uploads/JK/jkcpa/2011-1-16_182614_jkcpa.64x64.jpg Bizhelp's Avatar

    Bizhelp

    CPA

    Satisfied Customers:

    1873
    Bachelors Degree and CPA with Accounting work experience