Cookie Company (Continuing Case)
C 6. In this segment of our continuing case, you have decided to open a store where you will sell your company’s cookies, as well as coffee, tea, and other beverages. You believe that the store will be able to provide excellent service and undersell the local competition. To fund operations, you are applying for a loan from the Small Business Administration. The loan application requires you to submit two financial budgets—a pro forma income statement and a pro forma balance sheet—within six weeks.
How do the four w’s of preparing an accounting report apply in this situation— that is, why are you preparing these financial budgets, who needs them, what information do you need to prepare them, and when are they due?
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