Opportunities and threats are uncertainties that are beyond the control of the owner.
New market opportunities are created by demographic changes, changing consumer lifestyles, population growth in selected regions and technological breakthroughs.
Market forces may cause prices to plunge, either in the long run or short-run, changing government policies and regulation of labor are external threats that can cut profits or make business more difficult.
The pro forma income statement is a record of earnings or losses for a given period under present given conditions. Income Statement is also referred to as a profit and loss statement or operating statement (MDA 2005).
The importance for a projected income statement is to show investors how profitable the business is.