For the purpose of this spreadsheet assignment, assume that Skywalker is in the long-term construction business. As of the end of 2011, Skywalker has five active contracts (designated A through E). Information about each of the contracts, including forecasted information for 2012, is given below.

            

1. Using the information given, construct a spreadsheet that will compute the following.

(a) Total accounts receivable, end of 2011
(b) Total inventory, end of 2011
(c) Total estimated revenue to be recognized in 2012
(d) Total estimated cost of goods sold to be recognized in 2012
(e) Total estimated accounts receivable, end of 2012
(f) Total estimated inventory, end of 2012

2. Repeat (1) with the following changes with respect to the estimated cost to be incurred in 2012.

               

3. Refer back to the original information in (1). Repeat (1) with the following changes with respect to the estimated progress billings during 2012.

              

4. Refer back to (2) and (3). One of the changes results in a change in the estimated gross profit for 2012; the other change does not affect estimated gross profit for 2012. Explain this difference.