Man6608

8) What would BV's 1988 earnings per share be after all of the above adjustments?

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)?

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

This is evidence the company is having problems making profit. Haefren needs to address is the delinquency of their customers’ accounts, from 93 to 95, days sales outstanding have increased to 77 days, which is a lot higher than the 30-day monthly installment terms. The company is not stringent in collection efforts but this can be because of the economic condition in Germany. The company does not manage its assets very well. Its decrease in fix asset turnover from 6.98 in 1993 to 5.39 in 1995 can be because of their decrease in sales, but the low total asset turnover which is also decreasing from 2.1 to 1.5 prove that their assets are not being used very efficiently. Since sales are decreasing and competition increases their inventory days has also increased from 103 to 129 which again could cause low price. The company is already experiencing a loss of revenue due to the fact they lowered price because of economic condition.

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

6. Note 8 states Harnischfeger’s allowance for doubtful accounts.  Compute the ratio of the allowance to gross receivables (receivables before the allowance) in 1983 and 1984.  What would the allowance have been if the company maintained the ratio at the 1983 level?  How much did the pre-tax

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.

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

Given the net sales in 2011 is still higher than 2010, we can assume the problem is most likely with its operating cost management. On the other hand, HH’s assets turnover rate dropping 0.30 from 2010 suggests an inefficiency of generating more sales with its increased assets in 2011.

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.)

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?

If so, whether there was a second change in its method of accounting when JHH attempted to revert to LIFO method of accounting for its vehicle inventory by filing amended tax returns for 2002 and 2003.

For years 1983-1985, additional corporate assessment expense was given. This would lower Polymold’s earnings on their income statement. Another piece of data that was given is research and development expense. Without the CAD/CAM investment, research and development expense is $130,000. This is double to $260,000 without the CAD/CAM investment. This would lower earnings. We are also given the savings that the investment would yield. Without the CAD/CAM investment, there would still be savings – but not as much as with the CAD/CAM investment, which is due to the depreciation of the equipment and tax credits.

On June 1, Renn’s accounts receivable had a fair value of $155,000. Additionally, Renn’s in-process research and development was estimated to have a fair value of $235,000. All other items were stated at their fair values. On Cline’s June 1 consolidated balance sheet, how much is reported for goodwill?

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.