Harnischfeger Corporation

If you work this problem as a group assignment, each group member should be prepared to

7) What was the effect on 1988 earnings per share, of the non-recurring items: area development

5. What was the effect on earnings per share of the change in depreciation method for 'hit" tapes (assume that hit tapes made up 25% of new tape purchases, and that the average hit tape was owned for half the year)?

1. Using the historical data as a guide, construct a pro forma (forecasted) profit and loss statement

Describe clearly the accounting changes Harnischfeger made in 1984 as stated in Note 2 of its financial statements.

Harnischfeger also included the products purchased from Kobe Steel, LTD and sold by them in their net sales instead of stating only the gross margin per unit. They also included the financial statements of some foreign subsidiaries.

There was a change in the recognition of some types of sales. This resulted in a change in sales calculation. Harnischfeger incorporated products purchased from Kobe Steel, which were re-sold by the company, into its net sales. This increased aggregate sales and cost of sales by $28 million.

What is the impact of the December 1993 shipments of conventional lenses to Bausch and Lomb 1993 financial statements? Is the impact significant?

2. Considering your answer to item 1, the first three exhibits, and related introductory discussion, is it likely that the accounting system may distort product profit significantly? Why? (Ignore general, selling, and admin expense.)

In 1984, Harnischfeger’s reported profits during each of the four quarters, ending the year with a pre-tax operating profit of $5.7 million and a net income after tax and extraordinary credits of $15 million. So I think that this action was motivated by business considerations, since the accounting practices were not the best. These actions made profits look positive.

The following additional facts are collected for use in making adjusting entries on December 31 prior to preparing financial statements for the company’s first three months. Journalize the following adjusting journal entries in the General Journal on page 6 and then post them to

1. Discuss the environmental, strategic, and organizational changes that occurred over the life of Andersen in the context of Figure 11.1.

P. H. Glatfelter Company is a global manufacturer of engineered paper and specialty printing paper. The slogan, “Beyond Paper │it’s everything we do above and beyond making great paper−that’s what makes us unique,” explains what the company is all about. The company’s core values include being dedicated to the environment, and producing products that are environmental friendly. Glatfelter has more than one hundred and fifty years of experience, they have intelligence in technical facilities, and world class service. Glatfelter claims to have custom solutions for all customer needs. The company headquarters are located in York, Pennsylvania but there are locations in Fremont and Chillicothe, Ohio. Places outside of the U.S include Canada,

It would also reduce the risk of price increases by negotiating future prices. As shown previously, Harnischfeger was able to successfully reduce its cost to sales ratio. Through targeting new growth, emphasizing the high technology portion of its business and developing the Industrial Technologies Group, would create new business and ultimately increase sales for the company, which is shown in its financials, a 24% increase in sales from 1983 to 1984.

How did the competitive environment change for the John Deere Component Works between the 1970's and the 1980's? What information must management accounting systems provide to support effective decision-making in these different environments?