Harnischfeger

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

If the depreciation method changes from straight-line method to accelerated method then, depreciation expense would be increase and net income would decrease. The EPS ratio would represent a loss of $0.19 per share.

Based on the financial statements in 1984 Harnischfeger made changes from the previous year, the corporation computed depreciation expenses on plants, machinery and equipment using the straight-line method. Prior to the accounting changes in 1984, the company had experienced some financial losses was able to recover. There has been a change in depreciation accounting when it comes to profit. Before they used to apply the accelerated methods for the operating

The pre-tax income increased by 2.63 million as a result of the ratio change in 1984. The ratio of allowance to gross receivables in 1983 was 0.0001. The ratio in 1984 was 0.000067. If the company maintained the ratio at 1983 level, the allowance would have been $8.8 million. The pretax income increased by $2.9 million because of the change in ratio in 1984.

Additionally, research and development expense incurred in the development of new products or significant improvements to existing products was $5.1 million in 1984. $12.1 million in 1983 and $14.1 million in 1982. This change

Yes it was justified since revenues went down to $398,708 in 1984 from $447,461 in 1982. Which means that they were using less their machinery which causes less wear and tear to the machinery justifying an increase on the useful life of the asset.

The effect of the change in pension plans was a reduction in pension expenses by $14 million, increase in net income by $3.9 million, and a positive cash flow.

9. How did the pension plan changes affect Harnischfeger’s financial statements in 1984? Are these changes likely to affect future profits?

Total profit show a positive increase from 18% in 2013 to 31% in 2015, far reaching the brothers’ preference of $1.1 M in 2015, Appendix 3 showed $1.4 M net profit

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?

For pensions and post-retirement accounting methods to recognize the benefit costs, estimates and assumptions on future events ascertaining the timing and amount of benefits payments must be sought first. This paper seeks to compare and contrast the early historical accounting for pensions and post-retirement healthcare and life insurance benefits with the rules and guidance applied today in addition to the changes to such guidance and rules that would improve the accounting and reporting of such benefits depending on the business and political changes and as such, predict the effect of such changes on financial reporting and accounting practices.

9. How did the pension plan changes affect Harnischfeger’s financial statements in 1984? Are these changes likely to affect future profits?

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.

There are two possible sources of discrepancies we would like to disclose in this introduction: financial histories and restructuring charges. The first source of some discrepancies throughout the paper is a lack of some financial history. In the 1998 Darden Restaurants Annual Report, there was some inconsistency in whether history from FY 1996 was used or not. For this reason, we have been forced to omit FY 1996 in some

Net income totaled $97.8 million in 1984, an increase of 5% from 1983.when looking at the Consolidated Balance Sheet (Exhibit2), we found that the total assets grew 15% to $2.7 billion at the end of fiscal 1984 due to addition of real estate inventories as part of the acquisition of another company. The ratio of debt to total capitalization jumped to 43% at 1984 from 20% at previous year.