Micro Chip Computer Corporation
Consolidated Statements of Operations For the period September 26, 2007 through September 25, 2008 Sales
Cost of Sales $5,458.00
Gross Margin $2,876.00
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
Answer questions 1 and 2 below based on the financial data.
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 2009? Determine the target revenue figure, and explain why you do or do not feel that the company can hit this target.