Acquisitions

You will submit a report as well as the necessary spreadsheets for Section III of the final project.You will discuss acquisitions and the consolidation process. You will also create a hypothetical example of a consolidation worksheet to submit with your report.

Specifically, the following critical elements must be addressed:

III. Acquisitions: The company is also considering acquiring another small company. Communicate the crucial elements of creating consolidated financial statements including the income statement, balance sheet, and statement of cash flows in the case of possibly acquiring another company.

A. If the company acquires another small company, assess how it would know if it has to consolidate its financial statements on an annual basis. Defend your response.