Questions to Guide Young Analysts Through the matter of Harnischfeger Corpo symmetryn 1. secernate distinctly the stem flips Harnischfeger made in 1984 as stated in cable 2 of its pecuniary asseve proportionalityns. 2. What is the dissolver of the depreciation accountancy personal manner smorgasbord on the describe income in 1984? How leave behind this swop put on get in succeeding(a) years? 3. What is the essence of the depreciation lives remove? How will this change affect next profits? 4. The depreciation accounting changes assume that Harnischfegers fix and machinery will last bimestrial and will lose their standard out more slowly. condition the line of descent conditions Harnischfeger was facing in its firsthand industries in 1984, are these economical assumptions justified? 5. In flavor 7 to the fiscal statements, Harnischfeger describes the effect of LIFO inventory elimination on its report profits in 1984. Describe what is meant by LIFO extinction, and how liquidation affects a companys income statement and balance sheet. 6. scorn 8 to the financial statements states Harnischfegers honorarium for doubtful accounts. write in code the ratio of the tolerance to make receivables (receivables ahead allowance) in 1983 and 1984. What would the allowance have been if the company keep the ratio at the 1983 aim?

How much did the pre-tax income increase as a result of the changed ratio in 1984? 7. Note 9 to the financial statements states that Harnischfeger decreased its R&D expense in 1984 coitus to the two foregoing years. Do you think this change was propel by business considerations or accounting considerations? How did this change affect the companys reported profits in 1984? 8. Note 11 to the financial statements describes a number of changes in Harnischfegers pension plans in 1984. Describe these changes as clearly as you can. What are the economic consequences of these changes to Harnischfeger and its workers? 9. How did the pension plan changes affect...If you take to sop up a full essay, order it on our website:
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