Cumulative Spreadsheet Analysis This assignment is based on the spreadsheet prepared in (1) of the cumulative spreadsheet assignment for Chapter 13. Review that assignment for a summary of the assumptions made in preparing a forecasted balance sheet, income statement, and statement of cash flows for 2016 for Skywalker Enterprises. This assignment involves changing assumption (h) in the Chapter 13 assignment.
Revise the spreadsheet made in (1) of the Chapter 13 assignment in accordance with the above and following assumptions. In each case, any gains or losses expected to be realized in 2016 should be reported in a separate income statement line, “Investment income, net.” 1. Skywalker intends to sell security A in 2016 at an anticipated price of $22. That $22 will be used to buy security G. Skywalker’s best forecast is that the fair value of security G will remain at $22 through the end of 2016. 2. How does the sale of security A in (1) impact expected cash from operating activities in 2016? Explain. 3. Repeat (1) and (2) assuming that, instead of selling security A, Skywalker intends to sell security D in 2016 at an anticipated price of $15, which will be used to buy security G. Skywalker’s best forecast is that the fair value of security G will remain at $15 through the end of 2016.