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Problem
#40157

Micro Chip Computer Corporation- 4 FINANCIAL QUESTIONS USING FINANCIAL STATEMENT ATTACHED

PLEASE USE FIRST FILE ATTACHMENT FOR QUESTON 1 AND 2

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.

PLEASE USE SECOND FILE ATTACHMENT FOR QUESTIONS 3 AND 4.

3.Dtermine the year-to-year percentage annual growth in total net sales.

4. 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.


THANKS!

Attached file(s):
Attachments
FIN410_U2_ips.pdf  View File
CONSOLIDATED STATEMENT.pdf  View File

Attachment Content Summary (Note: view attachment at the above link before purchasing. Actual attachment content may vary slightly from that shown below.)

FIN410_U2_ips.pdf
Micro Chip Computer Corporation
Selected Financial Data

Fiscal Years 2004 2003 2002 2001 2000
(in millions except share
and per share amounts)
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 $ -- $ -- $ -- $ 0.12 $ 0.48
declared per
common share
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 $ 5,426 $ 4,600 $ 3,859 $ 3,945 $ 952
equivalents, and
short-term
investments
Total Assets $ 6,161 $ 5,289 $ 5,233 $ 6,364 $ 6,231
Long-term Debt $ 300 $ 954 $ 951 $ 949 $ 303
Shareholder's $ 3,104 $ 1,642 $ 1,200 $ 2,058 $ 2,901
Equity
CONSOLIDATED STATEMENT.pdf
Micro Chip Computer Corporation



Consolidated Statements of Operations For the period September 26, 2004 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

Solution Summary

The solution calculates year-to-year percentage annual growth in total net sales. It arrives at the target revenue figure to achieve the sales goal

Solution
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