Here you can read our free detailed guide of BUS 400 6-3 assignment: 24-month pro forma and see its solution.
Instructions of BUS 400 6-3 assignment
Overview
Creativity and diversity can lead to outcomes that both maximize profit and enhance social well-being. Business leaders use measurable factors to help determine design and development decisions, “go” or “no-go” milestones, financial models, and many “what if” scenarios. In this process, the new product or service is considered as part of a system.
Scenario
You rocked your BMC and received a great response from the experienced project manager (PM). As you read the feedback, you realize that it’s now time to develop the financial component. In the comments, the PM also stated that no matter how good an idea is, to senior management, it’s a “no-go” if the new product or service does not produce sales.
In preparation for your funding pitch, which you will submit as your course project in Module Seven, the PM also warns that funding pitches are quick and decisive. Including too much information could overwhelm senior management, cause more questions, and erode the purpose of the funding pitch.
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 will use the Module Six Assignment Template linked in the Guidelines for Submission section to complete this assignment.
You may use the current company’s income statement to project what can be added to the company’s profitability. This can be found in the company’s 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 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.
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 on appropriate assumptions.
What to Submit
Submit the completed Module Six Assignment Template Word Document as a Word document. Sources should be cited according to APA style.
Step-By-Step Guide on 6-3 assignment: 24-month pro forma
Introduction to BUS 400 6-3 Assignment
In this Owlisdom How-To Guide, you will learn how to develop a 24-month pro forma financial statement for a new product or service as part of your business course. The BUS 400 6-3 assignment: 24-month pro forma is crucial for demonstrating potential profitability to senior management and securing funding for your project.
Previous fiscal year: Identify historical information for the last fiscal year.
Previous Fiscal Year Analysis
To start the BUS 400 6-3 assignment: 24-month pro forma, we will write the fiscal year financial data for the previous year.
- Retrieve the previous fiscal year’s financial data from your company’s latest 10-K report.
- Focus on revenue, cost of goods sold, operating expenses, net income, and other relevant financial metrics.
24-month projections: Speculate projections for 24 months.
24-Month Financial Projections
For this part of the BUS 400 6-3 assignment: 24-month pro forma, we will write the projected financials for the next 24 months.
- Revenue Projections: Estimate sales growth based on market analysis and historical data.
- Expense Projections: Forecast future expenses, considering both fixed and variable costs.
- Net Income: Calculate projected net income by subtracting estimated expenses from projected revenues.
Explanation of assumptions: Explain how you were able to speculate appropriate assumptions.
Explanation of Assumptions
For the last section of the BUS 400 6-3 assignment: 24-month pro forma, we will explain our assumptions.
- Explain how market research, competitive analysis, and historical performance guide your financial projections.
- Include best, worst, and most likely financial scenarios to provide a comprehensive view.
Closing
By following this How-To guide of BUS 400 6-3 assignment: 24-month pro forma, you will be able to create a detailed and persuasive financial forecast that aligns with the expectations of senior management and supports the strategic objectives of your business idea.
In the next module of BUS-400, we will explore the 7-1 Discussion Feedback Loops.
References
Tesla. (2024, January 24). Tesla Releases Fourth Quarter and Full Year 2023 Financial Results | Tesla Investor Relations. https://ir.tesla.com/press-release/tesla-releases-fourth-quarter-and-full-year-2023-financial-results
Yahoo Finance. (2023). Tesla, Inc. (TSLA) Income Statement—Yahoo Finance. https://finance.yahoo.com/quote/TSLA/financials/
