Calculate the effect of each of these changes on net income

Reference no: EM131418545

The net income amounts for Hauser and Bradley over the four-year period beginning in 2009 follow.

After further examination of the financial report, you note that Hauser and Bradley made accounting method changes in 2010 and 2012, which affected net income in those periods. In 2010, the company changed depreciation methods. This change increased the book value of its fixed assets in each subsequent year by $5,000. In 2012, the company adopted a new inventory method that increased the book value of the inventory by $9,000.

a. Calculate the effect of each of these changes on net income in the year of the change.

b. Prepare a chart that compares net income across the four-year period, assuming that Hauser and Bradley made no accounting changes. How would your assessment of the company's performance change after you learned of the accounting method changes?

c. What principle of financial accounting makes it difficult to make such changes? Describe the conditions under which Hauser and Bradley would be allowed to make changes in their accounting methods.

Reference no: EM131418545

Questions Cloud

What does tony do in this situation : Tony knows he should report this but would have to admit to violating the company's information technology regulations by logging into Robert's computer. If he warns Robert to stop his betting, he would also have to reveal the source of his inform..

Case decision where employer or union was found guilty : Locate and briefly summarize a case decision where an employer or union was found guilty of bad faith bargaining (or not!). Briefly summarize the decision and explain whether you agree or disagree with the outcome.

How long can you afford to stay in kyrgyzstan : Your budget allows you to spend 90,000 som. To the nearest day, how long can you afford to stay in Kyrgyzstan, on average?- What's the standard deviation of your expenses for a trip of that duration?

Explain how sales of individual items would be entered : How sales of individual items would be entered? How the database would store the data compared to the current spreadsheet method? How monitoring of inventory levels based on sales using the database would work?

Calculate the effect of each of these changes on net income : What principle of financial accounting makes it difficult to make such changes? Describe the conditions under which Hauser and Bradley would be allowed to make changes in their accounting methods.

Nonprofit health care systems are often chartered as public : Exclusive enterprise liability where hospitals employ and insure their attending physicians are advantageous because ____. Tax-exempt hospitals may not establish discriminatory pricing for health care. Nonprofit health care systems are often chartere..

Research the issue in a variety of news sources : Research the issue in a variety of news sources, such as government sites (e.g., the National Institutes of Health and the National Institute of Mental Health) and online newspapers. Do not use blogs or other informal sources\

Aligning training with strategy : What impact does the external and internal environment have on aligning training with strategy? Does one have more influence than the other? Explain.

What is the mean difference in weights of the melons : What's the standard deviation of the difference in weights?- If a Normal model can be used to describe the difference in weights, what's the probability that the melon you got at the first store is heavier?

User Account

All Pages