User Account

All Pages

Calculate harnishfegers sustainable earnings

Assignment Help Financial Accounting
Reference no: EM132836961

Harnishfeger Corporation was a mining machinery and equipment company based in Wisconsin. The company voluntarily changed its depreciation accounting policy from the accelerated method to the straight-line method.

  • It disclosed the cumulative effect of this accounting policy change, equal to $11.005 million (net of applicable income taxes), in its financial statements.
  • In addition, the company also voluntarily changed the estimated useful lives of certain of its U.S. plant and equipment. This estimate change increased its pretax reported profit by $3.2 million.

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.

Reference no: EM132836961

Questions Cloud

What will be the value of a investment after five years : What will be the value of a $10,000 investment after 5 years, assuming annual compounding? Someone in the 15 percent tax bracket can earn 8 percent
Peripheral nervous system : Which receptor neuron is responsible for sending information from her finger to her peripheral nervous system? What is Early Onset Parkinson's disease?
The total amount of water on the earth : The total amount of water on the Earth ____________ from year to year and the hydrologic cycle ________________.
What profit will it earn in terms of dollars : If the Green Pastures golf course is price-taker and won't be able to charge more than its competitors who charge $75 per round of golf. What profit will earn
Calculate harnishfegers sustainable earnings : It disclosed the cumulative effect of this accounting policy change, equal to $11.005 million. Calculate Harnishfeger's sustainable earnings.
How do you integrate task and relationship behaviors : One of the most difficult challenges leaders face is to integrate their task and relationship behaviors. Do you see this as a challenge in your own leadership?
What is the mad for the 3-period moving average : c. What is the MAD for the 3-period moving average forecasts for days 4 through 7? Compare it to the MAD for the exponential smoothing forecasts for days 4 thro
Find what does cost of goods sold and gross profit mean : What does the cost of goods sold and gross profit mean? Word has gotten around that you know accounting and can explain it well.
Discuss what kind of teaching approaches you would have : Discuss what kind of teaching approaches you would have used in order to facilitate the learning of a 15 year old student with dyslexia.

Reviews

Write a Review

Financial Accounting Questions & Answers

  Define straight-line amortization

Southlake Corporation issued $900,000 of 8% bonds on March 1, 20X1. The bonds pay interest on March 1 and September 1 and mature in 10 years. Assume the independent cases that follow.

  Which choices will result in a greater future value

Which of the following choices will result in a greater future value. Each account earns an average of 10% per year. (The investments are end-of-year payments.)

  Interest and penalities on the delinquent taxes

On July 1, 2017, the beginning of its fiscal year, Ridgedale County recorded gross property tax levies of $3,200,000. The county estimated that 5% of the taxes levied would be uncollectible. At the end of the fiscal year the county had collected $48,..

  Outline the sac upper management weaknesses

Outline the SAC upper management weaknesses in their current cost allocation process and ways to improve it that will assist them.

  What is john annualized holding period return

John purchased 100 shares of Black Forest Inc. stock at a price of $154.90 three months. What is John annualized holding period return (annual percentage rate)?

  Healthcare system executives for the decision making

How does the financial planning and strategic planning of the new for-profit status align with the financial and strategic plans of the existing community hospital status?

  Find what would be weight used for equity in computation

If the common shares are selling for $26.7 per share, What would be the weight used for equity in the computation of Sports's WACC?

  What is the monthly amount of mortgage payment

You purchase a house for $435,134. Mortgage payments are made monthly. What is the monthly amount of you mortgage payment?

  Prepare a classified balance sheet for vatican shop of gifts

Prepare a Classified Balance Sheet for Vatican Shop of Gifts owned by Jonathan Benedict. Be sure to use the template to prepare the Balance Sheet

  Explain how management can shift income from one period

1) Explain how management can shift income from one period into another by using the allowance for uncollectibles account.

  How much will teacher have in principle and interest at end

How much will teacher have in principle and interest at the end of five years? A teacher won $100,000 and invests this money for five years

  Preventive maintenance on the lathe machinery

Robert Nester works at Marley Manufacturing Company. Last week, Robert, who earns $20 per hour, and time-and-a-half for overtime, worked 48 hours. Of those hours, he spent 36 hours working on Job 325Y and the remainder doing preventive maintenance on..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd