Prompt

The PM's directive at this point is for you to develop a 24-month pro forma that demonstrates the potential profitability of the new product or service in an income statement. You may use the current company's income statement to project what can be added to the company's profitability. Additionally, you may use the company's current year numbers and key assumptions based on your analysis of the market to project into the future. Remember, these numbers are purely speculative.

Income Statements Revenue USD 44438 47007 17095 50582 Cost of Revenue. Total USD 21190 21135 18352 28758 Selling/ General/ Admin, Expenses, Total USD 13085 14841 10789 1435 Depreciation/ Amortization USD 2330 7581 1908 2107 USD 4273 -4212 -24 Unusual Expense [Income] Other Operating Expenses, Total USD 1723 1771 1405 1824 Total Operating Expense USD 30174 40380 29564 28332 47021 Other, Not USD 184 I48 391 185 Net Income Before Taxes USD 5151 6190 -15507 Provision for Income Taxines LSD 1216 1431 3207 18 Net Income After Times USD 5935 4767 -12585 280 1918 Net Income Before Extra Items USD 3035 12305 1318 Total Extraordinary Items USD D 0 Income Available to Com Excl Extraord USD 5935 4767 12585 280 1418 Income Available to Com Incl Extraord USD 3935 4767 -12305 200 1318 USD 3035 4767 12385 780 1318 Diluted Net Income Diluted Weighted Average Shares USD 694 836 641 841 57 -10 5 21 Diluted EPS Excluding Extraord Items Previous Fiscal Year 24-Month Projections Sales $ 50,582 $ Cost of goods sold $ 28,758 $ Gross profit $ 21,824 Selling expenses $ 14,356 Administrative expenses $ 2107 Total operating expense $ 47021 Income from operations $ 3561 Other income $ 185 Income before tax and interest $ 21824 Other expense (interest) $ 1824 Income before income tax $ Income tax expense $ Net income $ 1318 Explanation of Assumptions