Percentage of sales method

For selected financial statements for Micro Chip Computer Corporation click here . Answer questions 1 and 2 below based on the financial data.

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 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.
Next, consider Micro Chip’s Consolidated Statement of Operations for the year ended September 25, 2008 (click here to download) 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 September 26, 2007 through September 25, 2008. 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?
To receive full credit on this assignment, please show all work, including formulae and calculations used to arrive at financial values. Students who are using Excel must provide an adequate explanation of the methodology used to arrive at that answer.

Percentage of sales method

For selected financial statements for Micro Chip Computer Corporation click here . 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 2005? Determine the target revenue figure, and explain why you do or do not feel that the company can hit this target.

Next, consider Micro Chip’s Consolidated Statement of Operations for the year ended September 25, 2004 (click here to download) and answer questions 1 and 2.

1.Use the Percentage Sales Method and a 20% increase in sales to forecast Micro Chip’s Consolidated Statement of Operations for the period September 26, 2004 through September 25, 2005. Assume a 15% tax rate and restructuring costs of 2% of the new sales figure.
2.Discuss your results from question number #1. What assumptions have you made? Do any of your assumptions seem unreasonable?
To receive full credit on this assignment, please show all work, including formulae and calculations used to arrive at financial values. Students who are using Excel must provide an adequate explanation of the methodology used to arrive at that answer.

Percentage of Sales Method

Dear OTA,

Please explain with steps.

Thanks
ALPHA Inc. has provided you with the following financial data for the year ended December 31, 2006. A major creditor has asked for pro forma financial statements for the year ending December 31, 2007.
Accounts payable $45500
Accounts receivable 60000
Accumulated depreciation 590000
Cash 1500
Common stock 71000
Cost of goods sold 195000
Depreciation expense 10000
General administrative exp 11000
Interest expense 12000
Inventory 95000
Long-term debt 55000
Notes payable 55000
Plant and equipment 740000
Retained earnings 75000
Sales 300000
Selling expense 40000
Wages payable 5000

Prepare the pro forma income statement and balance sheet for the year ending December 31, 2007, using the percent-of-sales method and the additional information that follows.
– 2007 sales are expected to be 10% higher than those of 2006
– Accounts receivable represent 20% of sales in both years
– A minimum cash balance of $1650 is maintained
– Inventory represents 32% of sales
– Plant and equipment outlays in 2007 are $20000
– Total depreciation expense for 2007 will be $15000
– Accounts payable represents 15% of sales
– Notes and wages payable will remain he same
– No long-tern debt will be retired in 2007
– No common stock will be issued or repurchased in 2007
– The firm will pay dividends equal to 50% of its earnings after taxes
– The firm uses a tax rate of 40% for all of its pro forma work
What is the firm’s quick ratio at December 31, 2007, expected to be?

Percentage of Sales Method

Https://mycampus.aiu-online.com/courses/FIN410/Assignment_Assets/FIN410_U2_ips.pdf

(Use this link above to answer the following questions)

Click here for selected financial statements for Micro Chip Computer Corporation. 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 2005? Determine the target revenue figure, and explain why you do or do not feel that the company can hit this target.

https://mycampus.aiu-online.com/courses/FIN410/Assignment_Assets/FIN410_U2_ips2.pdf

(Use this link to answer these next two questions)

Next, consider Micro Chip’s Consolidated Statement of Operations for the year ended September 25, 2004 (click here to download) and answer questions 1 and 2.

1. Use the Percentage Sales Method and a 20% increase in sales to forecast Apples’ Consolidated Statement of Operations for the period September 26, 2004 through September 25, 2005. Assume a 15% tax rate and restructuring costs of 2% of the new sales figure.

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

New instructions:
Part 1 #1- calculate the year-to-year growth in Total Assets
#2 – Do you think the company will hit a target sales growth of 17%?

Part 2 #1 – using the Percentage of Sales Method calculate a 25%
growth in sales to forecast Micro Chip’s Consolidated Statement of
Operations. Assume a 25% tax rate and restructuring cost of 2%.
#2 – discuss your results, assumptions and if any of your results are unreasonable.

Percentage of Sales Method

Create a set of pro forma financials (income statement and balance sheet) for the next fiscal year-end using the percent-of-sales method assuming the company’s sales have increased by 15%.

See the attachment for the existing income statement and balance sheet. A step by step description would be great so I can understand the process.

Percentage of Sales Method

Using Percentage of Sales. Eagle Sports Supply has the following financial statements. Assume
that Eagle’s assets are proportional to its sales.
INCOME STATEMENT, 2003
Sales $ 950
Costs 250
Interest 50
Taxes 150
Net income $ 500
If sales increase by 20 percent in 2004, and the company uses a strict percentage of sales planning
model (meaning that all items on the income and balance sheet also increase by 20 percent),
what must be the balancing item? What will be its value?

BALANCE SHEET, YEAR-END
2002 2003 2002 2003
Assets $ 2,700 $ 3,000 Debt $ 900 $ 1,000
Equity 1,800 2,000
Total $ 2,700 $ 3,000 Total $ 2,700 $ 3,000

a. Find Eagle’s required external funds if it maintains a dividend payout ratio of 70 percent and
plans a growth rate of 15 percent in 2004.
b. If Eagle chooses not to issue new shares of stock, what variable must be the balancing item?
What will its value be?
c. Now suppose that the firm plans instead to increase long-term debt only to $1,100 and does
not wish to issue any new shares of stock. Why must the dividend payment now be the balancing
item? What will its value be?

Percentage of Sales Method

Abbreviated financial statements for Archimedes Levers are shown in Table 19.12 . If sales increase by 10% in 2011 and all other items, including debt, increase correspondingly, what must be the balancing item? What will be its value?

Income Statement

Sales $4000
Costs, including interest 3500
Net income $500

Balance Sheet, Year-End 2010

2010 2009 2010 2009

Assets $3,200 $2,700 Debt $1,200 $1,033
Equity 2000 1667
Total 3200 2700 Total 3200 2700

Percentage of Sales method

The attachments include a project I am having difficulty putting together. Unfortunately I am not a guru with finance. However, the 2nd file includes a financial statement for the first part of the question and the 3rd file is for the 2nd portion.

My question is how do I configure what calculations to add? For example; what am I looking for to determine the year to year percentage annual growth in total net sales? Honestly, I don’t even know where to begin.

Help!

For selected financial statements for Micro Chip Computer Corporation click here . 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 2005? Determine the target revenue figure, and explain why you do or do not feel that the company can hit this target.
Next, consider Micro Chip’s Consolidated Statement of Operations for the year ended September 25, 2004 (click here to download) and answer questions 1 and 2.
1. Use the Percentage Sales Method and a 20% increase in sales to forecast Micro Chip’s Consolidated Statement of Operations for the period September 26, 2004 through September 25, 2005. Assume a 15% tax rate and restructuring costs of 2% of the new sales figure.
2. Discuss your results from question number #1. What assumptions have you made? Do any of your assumptions seem unreasonable?
To receive full credit on this assignment, please show all work, including formulae and calculations used to arrive at financial values. Students who are using Excel must provide an adequate explanation of the methodology used to arrive at that answer

Percentage of sales method

Click here to download the selected financial statements for Micro Chip Computer Corporation. Answer questions 1 and 2 below based on the financial data.
https://mycampus.aiu-online.com/courses/FINA310/Assignment_Assets/FINA310_U2_f1.pdf

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 achieved 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 .https://mycampus.aiu-online.com/courses/FINA310/Assignment_Assets/FINA310_U2_f2.pdf

1. 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, 2007 through September 25, 2008. Assume a 15% tax rate and restructuring costs of 2% of the new sales figure.
2. Discuss your results from question number #1. What assumptions have you made? Do any of your assumptions seem unreasonable?

Percentage of Sales Method

For selected financial statements for Micro Chip Computer Corporation(see attached file #1) . 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 2005? Determine the target revenue figure, and explain why you do or do not feel that the company can hit this target.

Next, consider Micro Chip’s Consolidated Statement of Operations for the year ended September 25, 2004 (see attached file #2 for chart information) and answer questions 1 and 2.

1.)Use the Percentage Sales Method and a 20% increase in sales to forecast Micro Chip’s Consolidated Statement of Operations for the period September 26, 2004 through September 25, 2005. Assume a 15% tax rate and restructuring costs of 2% of the new sales figure.
2.)Discuss your results from question number #1. What assumptions have you made? Do any of your assumptions seem unreasonable?
To receive full credit on this assignment, please show all work, including formulae and calculations used to arrive at financial values. Students who are using Excel must provide an adequate explanation of the methodology used to arrive at that answer.

Percentage of Sales Method

Please see the attached file.

Percentage of Sales Method

See attachment.

19 -8
Abbreviated financial statements for Archimedes Levers are shown in Table 19.12. If sales increase by 10% in 2011 and all others items, including debt, increase correspondingly, what must be the balancing item? What will be its value?

Income Statement

Sales $ 4,000

Cost, including interest $ 3,500

Net Income $ 500

Balance Sheet, Year-End

2010 2009 2010 2009

Assets $ 3,200 $ 2,700 Debt $ 1,200 $ 1,033

Equity $ 2,000 $ 1,667

Total $ 3,200 $ 2,700 Total $ 3,200 $ 2,700