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Measuring Sustainable Earnings
The following are selected excerpts from the company's financial statements:(in thousands)
Income before income taxes, equity items, and cumulative effect of accounting method change $5,838
Provision for income taxes (2,452)
Income after taxes 3,386
Equity items 858
Cumulative effect of change in depreciation method 11,005
Net income $15,249
Problem (a) Calculate Harnishfeger's sustainable earnings.
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