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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

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