income statements exercise 1

you’ll be asked to build a financial model for valuation of a company.
You’ll start with using historical income statements and build a ten year forecast using the information (attached in the document). This probably sounds easier than it is. I would suggest that you start with the unit growth (compounded) and forecast the units first. From there you have to calculate what you will charge per unit for general revenue and guess what you want to do with Management revenue. From here, you’ll need to decide what expenses are fixed and what are variable and how the forecast should be calculated.
Remember that in this case that the units are driving the forecast.
 
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