# Microchip Computer Corporation

### Microchip Computer Corporation

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

Fiscal Year       2008           2007       2006           2005         2004
Net Sales         \$8,334       \$6,141     \$9,181     \$11,933     \$11,062
Determine the year-to-year percentage annual growth in total net sales.
Year     Sales                       Growth Rate
2004     \$11,062
2005     \$11,933       (11933-11062)*100/11062 =   7.87%
2006     \$9,181         (9181-11933)*100/11933 = -23.06%
2007     \$6,141             (6141-9181)*100/9181 = -33.11%
2008     \$8,334             (8334-6141)*100/6141 = 35.71%
The target revenue for 2009 will have to be \$9167. That is 10% more of \$8334. Based on the year-to-year percentage annual growth rate, it is unlikely that the company is going to be able to achieve their sales goal. In 2008, the company had a significantly large growth rate. They had a small growth rate, which was a little over 2% of the 10% goal and 2005 and a relatively strong negative percentage during 2006 and 2007....

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