...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. Harnischfeger made significant accounting policy changes after their financial crisis and specifically in 1984. One of the major changes was the inclusion of the full sale price of construction and mining equipment the company purchased from Kobe Steel, Ltd and sold themselves. These sales aggregated $28.0 million in 1984. Another change the company made was the reduction in certain LIFO inventories which increased gross profit by $2.4 million in 1984. The company also was able to lower its manufacturing costs largely in part due to a reduction its pension expenses, which ultimately improved its gross profit. Lastly, the company changed its depreciation method from accelerated to straight line resulting in an $11 million increase in income in 1984. What do you think are the motives of Harnischfeger’s management in making the changes in its financial reporting policies?...
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...| Week 2—Harnischfeger Case | | Overview For this assignment, purchase and read the case file “Harnischfeger Corp.” You can purchase the reading from Harvard Business Publishing Web site. After reading the case, answer the questions on page three of this document. Submit your assignment by the end of Week 2. Rubric Use this rubric to guide your work. Tasks | Accomplished | Proficient | Needs Improvement | Not Acceptable | Assignment (5 points) | Insightful response demonstrates ample evidence of having read the article and reflected carefully on the underlying economic activity and is concise, wellwritten, error-free, and within requirements. (5 points) | Reasonable response demonstrates evidence of having read the article and reflected on the underlying economic activity and is concise, well-written, error-free, and within requirements. (4 points) | Response demonstrates some evidence of having read the article and reflected on the underlying economic activity and is adequately written, contains one error, and within requirements. (3 points) | Superficial response demonstrates no evidence of having read the article or reflection and is poorly written, with numerous errors, and does not meet the requirements. (0 – 2 points) | Directions Read the “Harnischfeger Corp” case study and answer the following questions. Submit your completed assignment no later than the last day of Week 2. 1. Describe clearly the accounting changes Harnischfeger...
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...Harnischfeger 1. Describe clearly the accounting changes Harnischfeger made in 1984 as stated in Note 2 of its financial statements In 1984 they changed the depreciation method they were using to expense their plants, machinery and equipment to the straight-line method for financial reporting purposes. This change included a adjustment of the residual values on certain machinery and equipment. They also included the products purchased from Kobe Steel, LTD and sold by them in their net sales. Furthermore they also included the financial statements of some foreign subsidiaries. 2. What is the effect of the depreciation accounting method change on the reported income in 1984? How will this change affect profits in future years? This change increased the net income to 11 million for 1984. This change will decrease profit in future years, because with the accelerated method, in the future years the depreciation expense would have been lower, and with the straight line they will continue to depreciate in the same amount for the life of the asset. 3. What is the effect of the depreciation lives change? How will this change affect future reported profits? The depreciation live increase decreases the annual depreciation expense causing an increase in future profits reported. 4. The depreciation accounting changes assume that Harnischfeger’s plant and machinery will last longer and will lose their value more slowly. Given the business conditions Harnischfeger was facing...
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...History Industrial artisans Alonzo Pawling and Henry Harnischfeger started the manufacturing business that would evolve into P&H Mining Equipment in 1884 in Milwaukee, Wisconsin USA. Alonzo Pawling. Henry Harnischfeger. Pawling was a castings pattern maker. Harnischfeger was a locksmith machinist with some engineering training. Both individuals served within the Whitehill Sewing Machine Company factory in Milwaukee starting in 1881.[1] Concerned that Whitehill business operations were drifting toward failure, Pawling exited the firm to start a small gear machining and pattern making shop in 1883. Needing more gear machining expertise and capital, Pawling persuaded Harnischfeger to join his firm as an equal partner. Their Pawling & Harnischfeger Machine and Pattern Shop officially began on December 1, 1884. Components and Assemblies Suppliers Pawling and Harnischfeger initially supplied industrial machinery components and assembly service support to large manufacturing operations in Milwaukee. Their customers included industrial knitting machine manufacturers, brick makers, grain drying equipment manufacturers and beer brewers. When an overloaded overhead bridge-type crane collapsed within the foundry operations of a nearby heavy equipment manufacturer known as the Edward P. Allis Manufacturing Company, Pawling and Harnischfeger rebuilt the crane with an improved and simplified design. Pawling & Harnischfeger...
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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. -The company entered into a long-term agreement with Kobe Steel, Ltd, to supply Harnischfeger requirements for construction cranes for sale in the United States. -There was an improvement in the minimum pension benefit. This change produced a lower pension expense. -The accounts receivable were net of allowances for doubtful accounts of $5.9 million and $6.4 million at October 31, 1984 and 1983, respectively. This decrease results in higher accounts receivable. -The was a change of the fiscal year from July 31 to September 30. This increased the sales by $5.4 million. -The R&D expense was decreased by $7 million -The was a liquidation of LIFO inventory quantities carried at lower cost compared with the current cost of their acquisitions. Because of this, COGS decreased. -The structure of the long-term debt was changed. Subordinated debentures replaced term obligation and the debt payable in German marks retired. 2. What is the effect of the depreciation accounting method change on the reported income in 1984? How will this change affect profits in future years? ...
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...Case Analysis 10-3 Kansas City Zephyrs Baseball Club, Inc. I.Issues Why does net income not equal cash flows? Why do we need accrual accounting? (Why do not we fire all accountants and just publish summary bank statements) Why do the differences between owners’, players’, GAAP and truth number exist?(Can accounting numbers be neutral representations of what happened? What happens if a retired non-roster player (e.g. Joe Portocararo) returns to the active roster while continuing to earn the same money promised him in his guaranteed contract? Of what importance are the periodic net income numbers if the clubs can always be sold for huge profits? How should Bill Ahern resolve the accounting conflict between the owners and players? How much did the Kansas City Zephyrs Baseball Club earn in 1983 and 1984? Facts This case shows that how different accounting methods can lead a company to different positions. That is what Bill Ahern was selected on April 9 to focus on reviewing the finances of the Kansas City Zephyrs Baseball Club, Inc., which was bought on November 1, 1982 by five shareholders for $24 million, because both the representatives of the owner of the 26 major league baseball teams and the professional players association agreed that Kansas City Zephyrs Baseball Club’s operations were representative, and the baseball club entity was not owned by another corporation, and it did not own the stadium where they play. So Bill Ahern was reviewing their finances on April...
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...With these developments, it is obvious that conflicts between parties of different nationalities occur and liability to tax on income of foreigners especially among those engaging in trading venture. Whilst the laws affecting domicile and residence may be sufficiently settled, it is paramount for courts to pursue a detailed analysis to ascertain specific preliminary issues so as to avoid controversial rulings. Courts often handle numerous financial cases that involve what can be best described as foreign or international elements. In such cases, court must decide whether it has the jurisdiction under the Family Law Act 1975 to make a decision on such cases. In the event that it is determined that the court is invested with the jurisdiction to determine the case, the court has to consider whether there is a system of law in foreign country that also has the jurisdiction to handle the case. As it was addressed in the case Attorney General of New Zealand v Ortiz [1984] AC 1, these benefits and costs to either party if the case resolution is made in foreign country as compared with the apparent country should also be a subject of concern. [1] Legal systems in most countries around the world adopt community property regime, which takes effect at the inception of marriage or at the time of divorce. For instance, California and Massachusetts in the United States have adopted community property regimes that support equal division of assets upon divorce. However, this provision...
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...Adapted from Bernhardt & Kinnear (1988). Cases in marketing management, pp. 6-16. Plano, TX: Business Publications, Inc. Pay careful attention to the following points. They are often used by instructors to evaluate either a written or oral analysis. 1. Be complete. Each area of the situation analysis must be discussed, problems and opportunities identified, alternative presented and evaluated using the situation analysis and relevant financial analysis, and a decision must be made. An analysis that omits part of the situation analysis or only recognizes one alternative is not a good analysis. Second, each area must be covered in-depth and within insight. 2. Avoid rehashing case facts. Every case has a lot of factual information. A good analysis uses facts that are relevant to the situation at hand to make summary points of analysis. A poor analysis just restates or rehashes theses facts without making relevant summary comments. 3. Make reasonable assumptions. Every case is incomplete in terms of some piece of information that you would like to have. A good case analysis must make realistic assumptions to fill in the gaps of information in the case. For example, the case may not describe the purchase decision process for the product of interest. A poor analysis would either omit mentioning this or just state that no information is available. A good analysis would attempt to present this purchase decision process by classifying the product and drawing upon real life...
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...are given. It is understandable then that we should seek out more opportunities to apply our skills and make more positive impacts within our jurisdictions. It is this general attitude that led us to get involved in investigating cold cases. How We Got Started Mark had, for several years, been consulting with our Coroner’s Division as a forensic anthropologist. During this time he came to learn that there were numerous coroners’ cases in which the identity of the decedent was unknown. These cases were kept in three-ring binders on a shelf in the Sergeant’s office. Over the years, in the course of this forensic work, we would discuss these cases and the progress that was being made on them. The conversation usually ran along the lines of us asking “any luck with that 1980 homicide victim?” and the sergeant answering “well, we’ve gotten so many new cases that I haven’t been able to even look at it yet.” This went on for a few years and through two different sergeants. One day we, as a crime analysis unit, were brainstorming about how we could broaden our “client base”, as it were. We had been successful in integrating ourselves into our Investigations Bureau and had been involved in numerous major cases. And, of course, we had always been active in producing tactical and strategic analyses for our patrol personnel. But we knew that we could be doing more, particularly given the size and responsibilities of our agency. It was during...
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...BUSINESS CASE Presented to the Accountancy Department De La Salle University In partial fulfillment Of the course requirements In ACCTBA2 (C33) March 2, 2015 A stakeholder is typically concerned with an organization delivering intended results and meeting its financial objectives. In general, a stakeholder can be one of two types: internal (from within an organization) or external (outside of an organization). The stakeholders in this situation are Lanie Marquez and Tim Rodriguez who are also partners in the retail distribution business and their capital contributions are as follows P500,000 and P300,000 respectively they are an internal stakeholder since they are also the owners. The total Capital of both stakeholders is P800,000 and with a monthly salary for both partners at P15,000 on the assumption that both of them will contribute to manage the business equally. Assuming that both managed the business equally the total salary for the year for Lanie and Tim are P180,000 each. They share profit and loss equally and no interest will be given on capital contributed. The problem for this situation is that Lanie is starting to get concerned with the behavior of her other partner Tim. He only manages the business 50% of the time, which will mean that his salary of P15,000 will need to decrease by also 50% since he does not manage the business equally with his partner. The business has seen a downturn in the profit outcome and for the current financial...
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...Ralph’s Grocery and United Food and Commercial Workers Union The case that I chose for the week 6 critical thinking assignment concerns Ralph’s Grocery Company, located in California. It applies to this week’s material due to the fact that the case involves unlawful suspension and discharge of an employee, as reviewed by the National Labor Relations Board. Background In May 2011, Vittorio Razi was an employee at Ralph’s Grocery and was suspended and terminated after he refused to take a drug test without first consulting with his UFCW Local 324 representative. The company (Respondent) says that on the day in question, Razi’s behavior was in question, acting nervous, anxious, agitated, and slurred speech. After a couple managers discussed the...
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... Many people wonder why their own teeth stain so easily. The enamel on your teeth and chromogens are what stains your teeth, but what exact beverage stains teeth the most? I chose this topic because I was curious to know what stains teeth the most. It affects us daily because it could rot your teeth or you can’t pick up hot chicks anymore. So what causes teeth to stain? The temperature causes teeth to expand or contract making it easier for stains. So hot and cold drinks affect that. Color in foods and beverages come from chromogens. Chromogens are intensely pigmented compounds that stick to teeth enamel. Chromogens cause a lot of trouble when they mix and react with other stain causing and stain promoting factors. Tannis may be natural or synthetic tannis is another factor that stains teeth. Tooth enamel is porous making it extremely susceptible to stains. The darker the liquid the darker the stain. There are some examples that stain teeth. Not only sodas bad but also Gatorade. Beets are bad for you also. Mostly cause they’re concentrated. Berries dark skins stain teeth. Ketchup is also really bad because of its bright red color and high levels of acid. Dark liquids and sauces you put on your foods also stain teeth. Colored candy and popsicles both contain colorants that will transfer to the teeth and embed in the porous enamel. Fruit juices, especially grape and cranberry, leave a colorful tinge on the teeth and tongue. Colored sodas instantly discolor teeth. The citric acids...
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...efficient investigative products and services. As a result, the coverage requirements for ANACI and NACLC investigations have been enhanced to support a common content baseline for all agencies. Note that these enhancements apply only to those ANACI and NACLC cases submitted on an SF 86. The purpose of this FIN is to provide you with information concerning what case coverage changes have been made. The case price adjustments necessary to support these changes will be reflected in the FY 2007 case prices. ANACIINACLC Cases Currently, listed and developed issues which are identified in ANACI and NACLC cases (for non-DoD customers) are not pursued beyond the normal scope of the investigation. These cases are returned to the requesting agency so that the agency may decide whether to adjudicate the case based upon the information in hand, conduct additional follow-up themselves, or request a Reimbursable Suitability Investigation (RSI) from FISD to cover the additional issues. Beginning with FY 2007, expansion of these issues will become a standard part of both the ANACI and NACLC products. Effective October 1, 2006, issues apparent at scheduling or developed during the course of the investigation and which fall within the 5-year case coverage period, unless otherwise noted, will be expanded upon according to the following chart (exception: issues which are known to have been covered in previous investigations, or which would reasonably have been expected to...
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...find that you would like even more time. I recommend that you enter the exam promptly since I will make deductions for those exceeding the 9:00 o'clock end time even if you enter late. Third, know that the legal reasoning essay will come from Module 4 on immunity. The variety of scenarios in that question will force you to think about and explain the nuances between sovereign and personal immunity, between absolute and qualified immunity, about loss of immunity, etc. You will want to understand all four cases from that module well before the exam. I will expect specific citations to the cases and the principles that they enunciate. An additional case that might be useful for you to look at is Canton v. Harris. A second question will address the rulemaking process and the principles underlying it. You should "walk into" the exam (in a virtual sense) with a clear sense of a fully articulated rulemaking process, so that you can pick and choose elements as appropriate in the case you will be presented. The third question will be drawn from the text regarding the Constitutional framework. Finally, remember that "open book" exams can be as challenging as closed book because the "bar" (the expectation) is higher. I think you will find that prior preparation will make a good deal of difference. As stated before, when you open the exam, answer the questions initially in word and copy it back to the exam. That way, you will not lose work, time...
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...in which it is acceptable for anyone who has suffered a personal injury to seek compensatory damages through litigation from someone connected with the injury. It’s the idea that for every accident someone is at fault. For every injury, there is someone to blame. And, perhaps most damaging, for every accident, there is someone to pay. There are so many ridicilous cases througout history where people sue somebody or some company for no reason and get a lot of money from them. For example . A caretaker fell off a ladder and sued the local authority for not training him to use a ladder - and won.He could get up to 50.000 pounds compensation. One former ex policeman received nearly £90,000 compensation for the trauma of seeing a woman die after he crashed into her car during a 999 call .The husband of the woman killed by the policeman received £16,000 compensation. Policemen cause a tremendous number of accidents - so many, indeed, that one force has stopped its drivers from speeding. The effect is damaging to society. The courts become clogged up with greedy people out for themselves, many with no real case at all while other people with real compensation claims, the people disabled in accidents, crippled in operations or people who have lost loved ones due clear negligent behavior. All the other who just sue somebody with ridicilous acusations should be ashamed of themselves and I hope that in the future others avoid trying to cash in just because it seems so easy...
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