Milestone Three Guidelines
Overview: The final project for this course is the creation of a portfolio consisting of a report and spreadsheets. You will be placed in a real-world scenario in which you will take the role of an associate in a certified public accountant (CPA) firm. The CPA partners in the scenario would like to help you grow within the firm by getting you more contact with some of the larger clients. You will address questions from one of the firm’s most influential and growing clients by assembling the necessary information in report. Your report should include spreadsheet examples. Topics addressed in the portfolio will cover partnership formation, bankruptcy, and acquisition of another company (which may be international).
Your three milestone assignments will consist of shorter reports and supporting spreadsheets. You should use your instructor’s feedback from the milestone submissions to improve your final report and spreadsheets.
Prompt: In Milestone Three, 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 toconsolidate its financial statements on an annual basis. Defend your response.
B. Describe what the consolidation process entails.
C. Compose a hypothetical example of the consolidation worksheet and elimination entries. Ensure all information is entered accurately.
Guidelines for Submission: Your report must be submitted as a 2- to 3-page Microsoft Word document with double spacing, 12-point Times New Roman font, one-inch margins, and at least two sources (in addition to your textbook) cited in APA format. Your accompanying spreadsheets must be submitted as Microsoft Excel files.