edf40wrjww2CF_PaperMaster:Desc
Micro Chip Computer Corporation
Part 1; Question 1:
Using the financial statement that was selected, determine the year to year percentage annual growth in total sales.
Part 1; Answer 1:
Micro Chip Computer Corporation
Fiscal Year 2000 2001 2002 2003 2004
Net Sales $11,062M $11,933M $9,181M $6,141M $8,334M
Year to Year Growth* - 8% -23% -33.00% 36%
* figured by taking one year sales minus the previous year sales divided by the same previous year sales.
Part 1; Question 2:
Using the year to year growth I figured in the answer to question 1, do you think that the company will hit its sales goal of +10% annual revenue growth for 2005? Determine the target revenue figure, and explain why you do or do not feel that the company can hit this target?
Part 1; Answer 2:
To figure the target revenue for 2005 we take 2004 net sales and multiply that by 1.10. $8,334M * 1.10 = $9,167M.
I can conclude that in 2005 the company will more than likely meet its sales goal of + 10%. Looking at the sales growth for each year I can see how this company has done in past and present years One reason why I do think they can meet their goal is because the sales did grow from 200 to 2001 by 8%. The next couple of years the company had a sharp decrease which was more than likely a result of economic troubles.&n ...