Harnischfeger 1. In Note 2 of Harnischfeger’s financial statement, the company included net sales of the construction crane products purchased from Kobe Steel, which was previously only reported in the gross margin. Additionally, financial statements of some foreign subsidiaries were included because their fiscal years ended July 31, 1984. An increase in net sales was reported by $5.4 million. Historically, Harnischfeger reported the depreciation at a principally accelerated rate. In 1984, the depreciation
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1. Describe clearly the accounting changes Harnischfeger made in 1984 as stated in Note 2 of its financial statements. Note 2 (pg. 17) states that in 1984 Harnischfeger changed their depreciation method that was being used to expense their plants, machinery and equipment from the direct method to the straight-line method for financial reporting purposes. An adjustment of the residual values on certain machinery and equipment was made. Harnischfeger also included the products purchased from Kobe
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Harnischfeger Corporation Introduction Harnischfeger Corporation is a machinery company in Milwaukee, Wisconsin. Harnischfeger was founded in 1884 as a partnership and was incorporated in Wisconsin in 1910 under the name Pawling and Harnischfeger. There were two major segments in this company, Construction Equipment and the Mining and Electrical Equipment divisions and Material Handling Equipment and the Harnischfeger Engineers divisions. Harnischfeger experienced a rapidly growth during
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This case is talking about Harnischfeger Corporation, leading producer of Construction Equipment, Mining and Electrical Equipment, Material Handling Equipment and Harnischfeger Engineer, based in Milwaukee, Wisconsin. The main topic of this case is the accounting policy changes after financial difficulties and its effect on financial reporting and the motive of these changes. Questions 1. Identify all accounting policy changes and accounting estimates that Harnischfeger made during 1984. Estimate
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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. In early 1980s Harnischfeger Corporation, a machinery company based in Milwaukee, Wisconsin, faced a severe financial crisis. The company’s poor performance continued through 1983, however, the company reported net profit in 1984. This positive result was a consequence of a number of changes that
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613 Chapter 3: Harnischfeger Case 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. Harnischfeger made the following accounting policy changes and accounting estimates during the year 1984. • There was a change in the recognition of some types of sales. This resulted in a change in sales calculation. Harnischfeger incorporated products
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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
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Case Write Up Harnischfeger Corporation Questions 1. Identify the accounting policy changes and accounting estimates that Harnischfeger made during 1984. Estimate the effect of these changes on the company's 1984 reported profits. Changes made and the effects of these changes: · In the financial notes, note 2, in 1984 the corporation calculated depreciation using the straight line method. In previous years they were using an accelerated methods of depreciating. By changing this method
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ACC 725 Harnischfeger Corporation Case Kai Chen 1. Prepare a brief description of the company and its environment. Harnischfeger Corporation was a machinery company based in Milwaukee. Harnischfeger was a leading producer of construction, mining and electrical equipments, export and foreign sales constituted more than 50% of the total revenues of the company. In 1980s, the company suffered a financial crisis due to the worldwide recession. Harnischfeger Corporation took some
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Jennifer Diaz ACG6175 Harnischfeger Corp: Case Study 2 1. Describe clearly the accounting changes Harnischfeger made in 1984 as stated in Note 2 of its financial statements. As stated in Note 2 of its financial statements, the accounting changes Harnischfeger made in 1984 are those of net sales of the products that were purchased from Kobe Steel which were then sold by Harnischfeger which added on to the net sales of the company. Harnischfeger included financial statements of certain
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