Modeling question - Potential ER associate position

What they are looking for is a bottoms up.

So for example lets take a look at apple here is the 8-K lets walk through this.

http://investor.apple.com/secfiling.cfm?filingID=1193125-13-20783&CIK=3…

So the "regular" income statement is the one that simply says "Net sales" and then has the number. What they are really asking for is a break out or "bottoms up" however you want to call it so instead of simply having one line that says revenue it should look like this.

Last Page of 8-K iPhone iPad Mac iPod iTunes/Software/Services Accessories Total = Number matches the net sales number.

This is how equity research models usually work unless the company is small and really only has a single revenue line like a small tech company.

The idea is that you "project" each product group EG iPhone revenue will grow at a different rate compared to iPad and iPod

In addition they are asking for Geographic breakouts this is also given when "the print" hits which is right above the breakout of revenue.

You see Asia/America... etc.

Again you're tracking revenue growth by region in this case as well.

So in sum what they are looking for is a "broken out" revenue by line item with each product projected differently. RARELY*** will you ever (in fact likely never) see revenue projected by geography, its usually done by product line.

Finally, in addition, you may want to do "operating margin" by segment. This is also key because maybe one product line is 50% of revenue but is really 75% of total Operating profit. This depends on the company's filings of course.

Hope that all helped good luck player.