Harnischfeger Corporation

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.

Note 9 indicates that Harnischfeger decreased its R&D expense considerably in 1984 relative to the previous two years. Do you think this change was motivated by business considerations or accounting considerations? How did this change affect the company’s reported profits in 1984?

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.)

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

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)?

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

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

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

1. Identify all the accounting policy changes and accounting estimates that Harnischfeger made during 1984. Estimate, as accurately as possible, the effect of these on the company's 1984 reported profits.

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

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

Harnischfeger’s corporate recovery plan was a four pronged approach that involved (1) changes in top management, (2) cost reductions to lower the break-even point, (3) reorientation of the company’s business and (4) debt restructuring and recapitalization. These changes at first glance appear to have allowed Harnischfeger to improve its financial performance from a net loss of $3.49 per share in 1983 to a net gain of $1.28 per share in 1984. In addition, Harnischfeger has appeared to have achieved a majority of its desired outcomes from each of its four changes as shown below.

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?

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,