You work as an accountant for regional CPA firm of Cash and Green. Your supervisor asked you to conduct research for three unrelated clients.

1.Hester Company is planning this year to present comparative income statements but only the current years balance sheet. Devin, president of Hester Company 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 Devin?

2.After the M. Forte Company issued its previous years financial statements, it noticed that it incorrectly calculated depreciation expense and, thus, disclosed this fact as a prior period adjustment in its current years financial statements. (This difference also did not affect any cash balances, since M. Forte maintained an operating loss for both periods.) However, M. Forte did not issue comparative financial statements in the current year. M. Forte now wonders how to disclose this prior period adjustment in its current years Statement of Cash Flows

.3. A new client for your firm is G. Sayers who is preparing personal financial statements for a bank loan. Mr. Sayers is attempting to list his social security benefits to be received based on his future life expectancy as an asset on his financial statements. Mr. Sayers states that such benefits meet the definition of an asset. Would you agree to allow the social security benefits to be listed as an asset? Required: 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).