The PMs 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 companys income statement to project what can be added to the companys profitability. This can be found in the companys 10-K. Look to other companies in the marketplace with products or services similar to the one you are proposing as a basis for your projections. Additionally, you may use the companys current year numbers and key assumptions based on your analysis of the market to project into the future. Remember, these numbers are purely speculative.
In the template, you will specifically address the following:
- Previous fiscal year: Identify historical information for the previous fiscal year.
- 24-month projections: Speculate projections for 24 months.
- Explanation of assumptions: Explain how you were able to speculate appropriate assumptions.
The company is Disney - here is an overview of the financial statement to look at 2022.
Link to 10-K for Google: dis-20221001 (sec.gov)
\begin{tabular}{|l|l|l|} \hline & Previous Fiscal Year & 24-Month Projections \\ \hline Sales & $82,772 & $ \\ \hline Cost of goods sold & $(75,925) & $ \\ \hline Gross profit & $6,847 & $ \\ \hline Selling expenses & $ & $ \\ \hline Administrative expenses & $(16,388) & $ \\ \hline Total operating expense & $ & $ \\ \hline Income from operations & $ & $ \\ \hline Other income & $ & $ \\ \hline Income before tax and interest & $ & $ \\ \hline Other expense (interest) & $ & $ \\ \hline Income before income tax & $5,285 & $ \\ \hline Income tax expense & $ & $ \\ \hline Net income & $3,505 & $ \\ \hline \end{tabular} CONSOLIDATED RESULTS (in millions, except per share data) Revenues: Services Products Total revenues Costs and expenses: Cost of services (exclusive of depreciation and amortization) Cost of products (exclusive of depreciation and amortization) Selling, general, administrative and other Depreciation and amortization Total costs and expenses Restructuring and impairment charges Other income (expense), net Interest expense, net Equity in the income of investees, net Income from continuing operations before income taxes Income taxes from continuing operations Net income from continuing operations Loss from discontinued operations, net of income tax benefit of $14 and $9, respectively Net income Net income from continuing operations attributable to noncontrolling and redeemable noncontrolling interests Net income attributable to Disney Earnings (loss) per share attributable to Disney: Diluted (1) Continuing operations Discontinued operations Basic(1) Continuing operations Discontinued operations Weighted average number of common and common equivalent shares outstanding: Diluted Basic 2022 \begin{tabular}{rr} \hline & 74,200 \\ \hline & 8,522 \\ \hline & 82,722 \\ & (48,962) \\ & (5,439) \\ & (16,388) \\ & (5,163) \\ \hline & (75,952) \\ & (237) \\ & (667) \\ & (1,397) \\ & 816 \\ \hline & 5,285 \\ & (1,732) \\ \hline & 3,553 \\ & (48) \\ \hline \hline & 3,505 \\ \hline & (360) \\ \hline \end{tabular} \begin{tabular}{lr} $ & 1.75 \\ & (0.03) \\ \hline \hline & 1.72 \\ \hline \hline \end{tabular} $ 2021 $ \% Change Better \begin{tabular}{|l|l|l|} \hline & Previous Fiscal Year & 24-Month Projections \\ \hline Sales & $82,772 & $ \\ \hline Cost of goods sold & $(75,925) & $ \\ \hline Gross profit & $6,847 & $ \\ \hline Selling expenses & $ & $ \\ \hline Administrative expenses & $(16,388) & $ \\ \hline Total operating expense & $ & $ \\ \hline Income from operations & $ & $ \\ \hline Other income & $ & $ \\ \hline Income before tax and interest & $ & $ \\ \hline Other expense (interest) & $ & $ \\ \hline Income before income tax & $5,285 & $ \\ \hline Income tax expense & $ & $ \\ \hline Net income & $3,505 & $ \\ \hline \end{tabular} CONSOLIDATED RESULTS (in millions, except per share data) Revenues: Services Products Total revenues Costs and expenses: Cost of services (exclusive of depreciation and amortization) Cost of products (exclusive of depreciation and amortization) Selling, general, administrative and other Depreciation and amortization Total costs and expenses Restructuring and impairment charges Other income (expense), net Interest expense, net Equity in the income of investees, net Income from continuing operations before income taxes Income taxes from continuing operations Net income from continuing operations Loss from discontinued operations, net of income tax benefit of $14 and $9, respectively Net income Net income from continuing operations attributable to noncontrolling and redeemable noncontrolling interests Net income attributable to Disney Earnings (loss) per share attributable to Disney: Diluted (1) Continuing operations Discontinued operations Basic(1) Continuing operations Discontinued operations Weighted average number of common and common equivalent shares outstanding: Diluted Basic 2022 \begin{tabular}{rr} \hline & 74,200 \\ \hline & 8,522 \\ \hline & 82,722 \\ & (48,962) \\ & (5,439) \\ & (16,388) \\ & (5,163) \\ \hline & (75,952) \\ & (237) \\ & (667) \\ & (1,397) \\ & 816 \\ \hline & 5,285 \\ & (1,732) \\ \hline & 3,553 \\ & (48) \\ \hline \hline & 3,505 \\ \hline & (360) \\ \hline \end{tabular} \begin{tabular}{lr} $ & 1.75 \\ & (0.03) \\ \hline \hline & 1.72 \\ \hline \hline \end{tabular} $ 2021 $ \% Change Better
