Harnischfeger Corporation Teaching Note INTRODUCTION The purpose of the "Harnischfeger Corporation" case is to expose students to the managerial motives for making major financial reporting policy changes. Generally accepted accounting principles (GAAP) allow companies wide latitude in the choice of accounting policies. After a firm chooses a set of accounting policies‚ current accounting rules permit changes from one alternative policy to another at the discretion of the management
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1. Describe clearly all of the accounting changes Harnischfeger made in 1984. -In 1984‚ there was a switch from accelerated to straight line depreciation retroactively. Because of this‚ the depreciation expense decreased. -The estimated depreciation lives on certain U.S. plants‚ machinery and equipment changed. The economic life of these assets was increased‚ so the depreciation expense was lowered. -There was an improvement in the minimum pension benefit. This change produced a lower pension
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O’Brien had the same thoughts as him‚ allowed Winston to be more confident and comfortable with himself. Winston believes O’Brien can help him achieve the freedom he wants. O’Brien’s character also portrays the theme of betrayal; all the hope Winston had in O’Brien quickly changes into deceit as he realizes‚ O’Brien is the individual who tortures him to love Big Brother. First‚ O’Brien pretends to be a part of the Brotherhood. He inducts Winston into the group‚ but does it to frame him for the ultimate
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April 19th‚ 2013 Case Study- Harnischfeger Corporation 1. Describe clearly the accounting changes Harnischfeger made in 1984 as stated in Note 2 of its financial statements. The accelerated depreciation method was changed from to straight-line on all company assets that caused to increase after-tax net income for 1984 by $11.005 million. The cumulative effect of change in 1984 there will be no reduction in the depreciation expense due to change. in 1984 decreased by $7.0 million over
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monthly income if I don’t suffer any vacancy losses. The depreciation amount was calculated by taking the purchase amount‚ removing the amount dedicated to land and then multiplying it by 27.5%. The tax liability assumed is 30%. When we add back in the depreciation value we get the following Annual Tax
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I. INTRODUCTION Statement of Cash Flow (Cash Flow Statement) describes the changes in the cash position of a company during specific period of time. In business as in personal finance‚ cash flows are essential to solvency. Solvency can be described as the degree to which the current assets of an individual or entity exceed the current liabilities of that individual or entity. Cash flow is crucial to an entity’s survival. Having ample cash on hand will ensure that creditors‚ employees and others
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Understanding Cash Flows and Capital-Budgeting DecisionsIndiana Wesleyan University FIN-310-01A Dr. Sam OjoOctober 19‚ 2014 Understanding Cash Flows and Capital-Budgeting Decisions When evaluating cash flows for determining whether or not to pursue constructing a building to manufacture cupcakes there are several things to consider. The most important would be looking at a Grammy’s incremental after tax cash flow. Then one needs to determine the projects initial outlay‚ the differential cash flows over
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footage during the opening moments of the film prepare the audience for the story? It prepares and keeps us aware that the movie would be about homogenous‚ propagandas‚ political crimes and influences and brain washed people. It really had a negative effect on how the movie would be and how unhappy the people were. 2. How does the film present the people who watch this footage? The film presents the people as people who can’t think for themselves. They have been brain washed into believing the political
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think it’s unfair that some people can’t get a visa‚ does not count as much. However‚ urging you not to use I in essays can fail in two ways. Firstly‚ you could still write about your own feelings and opinions using different phrases‚ and secondly‚ not all uses of the first person are bad. It’s a good idea to stay clear of phrases such as “I think‚” or “in my opinion‚” unless you’re evaluating a claim. However‚ there is no apparent reason for not saying “I will first define the key terms.” Using the first
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Statement of Cash Flows Larry D. Abernathy ACC 421/Intermediate Financial Accounting I Richard Burden Statement of Cash Flows The facts contained in the balance sheet and the profit and loss statement is connected by the bridge that is the statement of cash flows. By recording the flow of cash and cash equivalents into and out of the company the statement of cash flow is a good indicator of a company’s health. Thus‚ the purpose of the statement of cash flow is to reflect
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