Alex Corporation is planning this year to present comparative income statements but only the current years balance sheet. James Johnston, president of Alex Corporation requests your advice as to whether comparative cash flow statements for both the current and prior periods are necessary considering only the current years balance sheet is presented. Are there any authoritative pronouncements that address this issue that you could present to Mr. Johnston?

a) Provide responses for each independent case on the appropriate accounting treatment.

b) Support your responses with code sections from the FASB Accounting Standards Codification (ASC).