Use the Percentage Sales Method and a 25% increase in sales

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 $8,334.00 Cost of Sales $5,458.00 Gross Margin $2,876.00 Operating expenses: 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