Part 1: Financial Statements

1). Prepare the consolidated balance sheet.

2). Prepare the indirect cash flow statement.

Use the case information and financial data in the Option 2 template file

Part 2: Analysis Research cash flow statements. Describe the proper accounting and reporting for cash flow statement with U.S. GAAP and IFRS. What are the relevant U.S. GAAP and IFRS standards? Discuss how each standard is similar and different in handling the reporting of the cash flow financial statements.

Your analysis should be two to three pages in length, not counting the required title and reference pages (citing at least two to three sources),

Push Corporation and Subsidiaries
Consolidated Statement of Cash Flows
For the Year Ended December 31, 20x7
(Indirect Method)
Information for Cash Flow Statement completion
Push Consolidated Income Statement
12/31/20x7							12/31/20x7
	Revenue						950,000
	Gain on Sale of Land						50,000
	Loss on Sale of Equipment						-5,000
	Cost of Goods Sold						500,000
	Depreciation Expense						100,000
	Other Expenses						200,000
	Total expenses						800,000
	Consolidated Income						195,000
	Parent's Equity income from Subsidiary						100,000
	Subsidiary Net Income 20x6						-100,000
	Consolidated Net Income						195,000
	B. Retained Earnings Statement
			Parent's beginning R.E from operations
			Parent's Income from operations
			Parent's Dividend to stockholders
			Consolidated Retained Earnings

Push Corporation Balance Sheet

Dates

12/31/20x6

Cash

150,000

Acct Rec

200,000

Inventories

150,000

Land

25,000

Land

100,000

Buildings and Equipment

500,000

Goodwill

100,000

Total Debits

1,225,000

Acc Depreciation

200,000

Accts Payable

50,000

Bonds Payable

150,000

Common Stock

200,000

Paid in Capital

125,000

Retained Earnings

500,000

Additional Information

A.

Push Corporation has 100% control of Summer Corporation on 01/02/20x7.

B.

Push Corporation has $195,000 Consolidated Income for 20x7.

C.

Push Corporation pays a $10,000 Dividend to stockholders.

D.

Summer Corporation reports income of $100,000 and pays Dividend of $50,000 in 20x7.

E.

Push Corporation sells land that it purchased in 20X1 for $50,000 to nonaffiliated for $100,000.

F.

Summer Corporation purchases additional equipment for 200,000 at end of 20x7.

G.

Parent, Push Corporation purchases Additional Equipment for $150,000 on June 01, 20x7.

H.

Common Stock of $10.00 par was issued with 10,000 shares for $100,000 value on Mar, 01 20x7.

I.

Long Term Bonds were retired at fair market value with cash on Jan 15, 20x7, $150,000.

K.

Land with a book value of $25,000 was sold for $20,000, a loss of $5,000.

L.

Increase in Cash and Increase or decrease in cash balance. Done after all entries performed.

M.

Account Receivable increased $100,000.

N.

Inventory increased $100,000.

O.

Increase in Accts Payable $100,000.

P.

Accumulated Depreciation increased $100,000.

Q.

Goodwill did not change in year.

R.

Paid In Capital did not change in year.

Note: No Item J=intentionally omitted

Entries to Perform:

A

No entry required for cash flow statement. Assumption is $100,000 Goodwill is after Eliminating Entry for Consolidation.

B

Consolidated Income on

Retained Earnings

C.

R.E

Dividend

D

No entry required for cash flow statement. In Consolidation process, intercompany transactions are removed.

E.

Increase in Cash Land

Gain on Sale of land

Land

F

Additional Equipment

Acquisition of Equipment

G.

Additional Equipment

Acquisition of Equipment

H.

Increase in cash flow financing

Common Stock

I.

Long Term Bonds

Increase in financing retirement

K.

Increase in financing

Loss on sale of Equipment

Equipment

L.

Cash at end of cash flow process calculation

Increase in cash

M

Increase in Acct Rec

Acct Rec

N.

Increase in Investment

increase in inventory

O.

Increase in Accts payable

Accounts Payable

Push Corporation and Subsidaries
Consolidated Statement of Cash Flows
For the Year Ended December 31, 20x7
(Indirect Method)
Cash Flows from Operating Activities
	Consolidated Net Income
		Noncash expenses, revenues,losses and gains included in income:
			Depreciation
			Gain on sale of Land
			Loss on sale of land
	Changes in Operating Assets and Liabilities
		Increase in Acct Recievable
		Increase in Inventory
		increase in accts payable
				Net Cash provided by Operating Activities
Cash Flows from Investing Activities
	Acquistion of Equipment
	Sale of Land
	Sale of Land B.
				Net Cash used in Investing Activities
Cash Flows from Financing Activities
	Dividends Paid
	Cash paid for Bond Retirement
	Cash received for Stock Issuance
				Net Cash used in Financing Activities
Net Increase in Cash
Cash at the beginning of the Year
Cash at the end of the Year

1,225,000