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ACC 607 Financial Statement Articulation and Forecasting Project1 Crunchy Cones, Inc. Management of an ice cream cone retail company, Crunchy Cones, Inc., is considering opening specialty stores that sell whole wheat ice cream cones lined on the inside with bittersweet chocolate. The cones would be manufactured by a company experienced in the manufacture of chocolate products and Crunchy Cones would be a retailer for the cones. You have been asked to prepare a generic template that can be used for “what-if” analyses of monthly financial projections for the first three months of operations. The spreadsheet should include an Income Statement, Balance Sheet, Statement of Retained Earnings and Statement of Cash Flows. The spreadsheet should be able to accommodate changes in any of the variables or assumptions specified in the input section. An acceptable solution to the project for sets of inputs is attached. You may use any layout that conforms reasonably to U.S. GAAP. There are many correct ways to derive account relationships. An Input Sheet (Input “A”) and blank spreadsheets with the desired format for the statements are available on Blackboard (see “Course Documents”). While preparing the spreadsheet, please make the following assumptions: (1) Unless otherwise stated, all cash receipts occur on the first day of the month. (2) All cash disbursements occur on the last day of the month. (3) Inventory purchases are paid for in the month after purchase. (4) Assume that bank loans are received on the last day of the month. Interest accrued on the bank loan is paid in the same month. (5) Selling, general and administrative expenses are paid in the month they are expensed. (6) Income taxes are paid at the end of the quarter. If the sum of the three month’s income taxes is negative, the company does not get a refund until the end of the year. (7) The units sold is a positive

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