Math in the Workplace - Algebra
MICRON TECHNOLOGY, INC.,
Semiconductor Manufacturing
Accountant
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Problem:
The following financial data was published in the Company's annual report.
| (Amounts in millions, except for per share and employee data) |
| Fiscal year |
2000 |
1999 |
1998 |
| Net sales |
$ 7,336.3 |
$ 3,764.0 |
$ 3,025.3 |
| Cost of goods sold |
3,957.1 |
2,950.4 |
2,744.9 |
| Gross Profit |
$ 3,379.2 |
$ 813.6 |
$ 280.4 |
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| Operating income (loss) |
2,293.3 |
(47.0) |
(516.4) |
| Net income (loss) |
1,504.2 |
(68.9) |
(247.1) |
| Earnings (loss) per share: |
$2.73 |
$(0.13) |
$(0.57) |
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| Cash and liquid investments |
$ 2,466.4 |
$ 1,613.5 |
$ 649.6 |
| Property, plant and equipment, net |
4,257.6 |
3,799.6 |
3,035.3 |
| Total assets |
9,631.5 |
6,965.2 |
4,703.5 | |
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If you were creating this spread sheet, what would be the formula for calculating Gross Profit?
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Knowing the Net Income and Earnings per Share, how would you calculate the number of “outstanding shares” (number of shares of stock available for trading).
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Create a formula for calculating the miscellaneous assets not itemized on the spread sheet.
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Create a formula for calculating the annual percentage increase or decrease
in the company's Net Sales.
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Create a formula for calculating annual increase or decrease of the Net Income as a percentage of Sales
 MICRON TECHNOLOGY, INC.
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Solution:
| A. |
Gross Profit = Net Sales - Cost of Goods |
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| B. |
Outstanding Shares = net income  earnings per share |
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| C. |
Miscellaneous Assets = total assets - investments + property |
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| D. |
Difference in Sales = sales2nd yr - sales1st yr
Percentage increase (decrease) = difference sales1st yr |
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| E. |
Percentage = net income sales
Difference = percentage2nd yr - percentage1st yr
Increase (decrease) = difference percentage1st yr |