Micro Chip Computer Corporation Case

Micro Chip Computer Corporation

1. Year to Year percentage annual growth in net sales:

Micro Chip Computer Corporation Financial data

Fiscal Years Net Sales % Growth rate in Net Sales

2008 8334 35.71%

2007 6141 -33.11%

2006 9181 -23.06%

2005 11933 7.87%

2004 11062

% Annual Growth Rate = SALE IN CURRENT YEAR - SALE IN PREVIOUS YEAR SALE IN PREVIOUS YEAR

2. Growth Rate in Four Years

Calculating the average growth rate: Total growth in 4 years -24.66% Total growth in 4 years SALE IN CURRENT YEAR 2008 - SALE IN YEAR 2004 SALE IN YEAR 2004 Average Annual growth rate -6.83% Annual growth rate = (1 + TOTAL GROWTH RATE)(1/4)- 1

Analysis from Answer 1 and 2:

The average growth rate of Micro Chip Computer Corporation is -6.83%. It can be expected that the average growth rate will continue to be the same and the company will have a negative growth rate of 6.83%. However, the positive growth rate in the year 2008 is a ray of hope for the company and it can actually expect the growth rate to be +10%.

3.

Target Revenue Figure:

Target revenue for 2009 = SALE OF FISCAL YEAR 2008 ) * (1 + 10% ) Target revenue for 2009 = 9167.4 Analysis:

It seems that company will be able to achieve the target despite the average growth rate of -6.83%. This is because the company was able to achieve the growth rate of 35.71%. So, 10% target is achievable.

4. Answer:

Micro chip computer corporation

Consolidated statement of operations for the period September 26,2007 to September 25, 2008 Amount Percentage of