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Beginning with Chapter 2 each chapter in this text will include a spreadsheet assignment based on the financial information of a fictitious company named Skywalker Enterprises The assignments start

Beginning with Chapter 2, each chapter in this text will include a spreadsheet assignment based on the financial information of a fictitious company named Skywalker Enterprises. The assignments start out simple—in this chapter you are not asked to do much more than set up financial statement formats and input some numbers. In succeeding chapters, the spreadsheets will get more complex so that by the end of the course you will have constructed a spreadsheet that allows you to forecast operating cash flows for five years in the future, adjust your forecast depending on the operating parameters that you think are most reasonable, and analyze the impact of a variety of accounting assumptions on the reported numbers.

So, let’s get started with the first spreadsheet assignment.

1. The following numbers are for Skywalker Enterprises for 2008.

Short-Term Loans Payable               

$ 30

Unearned Revenue                    

35

Interest Expense                     

27

Paid-In Capital in Excess of Par           

150

Cash                              

30

Other Long-Term Liabilities             

253

Dividends                          

0

Accumulated Depreciation              

27

Other Long-Term Assets               

40

Inventory                           

459

Cost of Goods Sold                   

1,557

Long-Term Debt                     

621

Investment Securities (current)           

70

Income Tax Expense                   

12

Retained Earnings (as of January 1, 2008)    

93

Receivables                         

81

Long-Term Investments                 

250

Sales                               

2,100

Accounts Payable                     

222

Other Equity                        

72

Property, Plant, and Equipment           

597

Other Operating Expenses              

480

Your assignment is to create a spreadsheet containing a balance sheet and an income statement for Skywalker Enterprises.

2. Skywalker is wondering what its balance sheet and income statement would have looked like if the following numbers were changed as indicated.

 

Change

 

From

To

Sales

$2,100

$2,190

Cost of Goods Sold

1,557

1,650

Other Operating Expenses

480

495

Create a second spreadsheet with the numbers changed as indicated. (Note: After making these changes, your balance sheet may no longer balance.) Eliminate any discrepancy by increasing or decreasing Short-Term Loans Payable as much as necessary.

 

May 14 2020 View more View Less

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