Percentage sales, management homework help

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Percentage sales, management homework help

  1. Use the Percentage Sales Method and a 25% increase in sales to forecast Micro Chip’s Consolidated Statement of Operations for the period of September 26, 2008 through September 25, 2009. Assume a 15% tax rate and restructuring costs of 5% 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?

September 25, 2008 Sales


Cost of Sales


Gross Margin


Operating expenses:

R & D


Selling, General, and Administrative


In‐process R & D


Restructuring costs


Total Operating Exp


Operating income


Total interest and other Income net


Income before provision for Income taxes


Provision for income Taxes (15%)


Net income



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