Beginning in November 1983 Harnischfeger reported the Net Sales of Kobe, Ltd. and sold by the Corporation in their financial statements. Prior to that only the gross margin of Kobe originated equipment was included. The Corporation also began including the financial statements of certain foreign subsidiaries are included on the basis of their fiscal years ended July 31.
During fiscal year 1984 such sales aggregated $28.0 million. Also, effective November 1, 1983, the financial statements of certain foreign subsidiaries are included on the basis of their fiscal years ended July 31. This change had the effect of increasing net sales by $5.4 million for the year ended October 31, 1984. The impact of these changes on net income was insignificant.
The Corporation also switched from accelerated depreciation expense to straight-line depreciation expense and applied it retroactively to all assets previously subjected to accelerated depreciation. The review of the depreciation policy led to the Corporation changing its estimated depreciation lives on certain US plants, machinery and equipment, which increased net income for 1984.
The monetary effect of the depreciation accounting change in 1984 was to increase Net Income by 11.0 million or $.93 per common and common equivalent share. The change to estimated depreciation lives and residual values on certain US plants, machinery, and equipment increased Net Income by 3.2 million or $.27 per share.
- How and by how much ($) will this change affect profits in future years?
6 5 186160-PDF-ENG (1).PC x + V - x E = 0 file:///C:/Users/User/AppData/Local/Packages/Microsoft.MicrosoftEdge_8wekyb3d8bbwe/TempState/Downloads/186160-PDF-ENG%20(1).PDF 13 of 23 - + 9 O Fit to page ID Page view A Read aloud Add notes F & Harnischfeger Corporation 186-160 186-160 Harnischfeger Corporation CONSOLIDATED BALANCE SHEET (Dollar amounts in thousands except per share figures) CONSOLIDATED STATEMENT OF CHANGES IN FINANCIAL POSITION (Dollar amounts in thousands) - 18 October 31, 1923 1984 Year Ended October 31. 1983 1982 $ (34,630) S (76,531) Assets Current Assets Cash and temporary investments Accounts receivable Inventories Refundable income taxes and related interest Other current assets Prepaid income taxes $ 4,171 11.005 15,175 (34.630) (76,531) S 96.007 B7 148 144.312 1.296 5.502 14.494 349 259 5 64 275 63,740 153,594 12,585 6,023 14.222 314 449 13.552 3,397 4,834 (3.178) 15,241 7.891 2,077 1993) (500) 6,583 (17,205) Investments and Other Assets Investments in and advances to: Finance subsidiary, at equity in net assets Other companies Other assets 1406 8,849 4,445 13.969 27,263 6,704 2.514 6.411 15,629 (2.168) 7,039 (67) 11,805 2,034 72,172 Funda Were Provided by Applied to): Operations: Income (los) before cumulative effect of accounting change Cumulative effect of change in depreciation method Net Income (loss) Add (deduct) - Items included not affecting funds: Depreciation Unremitted earnings) loss of unconsoldated companies Deferred pension contributions Deferred income taxes Reduction in accumulated depreciation resulting from change in depreciation method Othernet Decrease in operating working capital (see below) Add (deduct) the effects on aperating working capital of: Conversion of export and factored receivable sales to debt Reclassification to deferred liabilities: Accrued pension costs Other abilities Foreign currency translation adjustments Funds provided by operations Financing, Investment and Other Activities Transactions in debt and capitalized lanse obligations- Long-Term debt and capitalized lease obligations: Proceeds from sale of 15% Senior Notes and 12% subordinated debentures, not of issue costs Other increases Reperyments Restructured debt Debt replaced, including conversion of receivable sales of $23,919, and short-lerm banknotes parable of 9.028 Operating Plants Land and improvements Buildings Machinery and equipment 23,919 9,419 59,083 120.99 109 451 1932591 22192 5472.704 10.370 60,377 122.154 192,901 (107.677) 85.324 $415.402 14,264 5.510 11.919 37.287 Accumulated depreciation 18.029 15.943) 16.270 $ 9,090 120,530 1,474 (161,500) 25,698 (9,4091 973 1760) 158,058 Llabilities and Shareholders' Equity Current Liabilities Short-term notes payable to banks by subsidiaries Long-term debt and capitalized lease obligations payable within one year Trade accounts payable Employee compensation and benefits Accrued plant closing costs Advance payments and progress bilings Income taxes payable Account payable to finance subsidiary Other current liabilities and accruals 37.716 15,041 2460 20,619 1,545 S 8.155 18.265 21.228 14.343 6,348 15,886 3.463 3,436 32.33 123 457 abli (39,496) 24107 (37399) 18209 (158.068) (780) 139023 (4.742) 1240169 14 273 29.673 117,217 449 Long-Term Obligations Long term debt payable to: Una siated lenders Finance subsidiary Capitalized lease obligations Not increase repayment) In short-term bank notes payable Net increase repayment) in debt and capitalized lease obligations Issuance of Common stock Common stock purchase warrants Salarind pension assets reversion Plant and equipment additions Advances to unconsolidated companies Other -- ne! Funds provided by (applied to financing, investment and other activities 21,310 6.683 39,2017 (5.546) (2882) 269 128,550 139,092 5.400 8.11.20 162 812 (1.871) 1531 (10,819) 848 7.870 1:42 k Type here to search ^ 0) 6:42 PM 1/19/202015 6 5 186160-PDF-ENG (1).PC x + V - x E = 0 file:///C:/Users/User/AppData/Local/Packages/Microsoft.MicrosoftEdge_8wekyb3d8bbwe/TempState/Downloads/186160-PDF-ENG%20(1).PDF 13 of 23 - + 9 O Fit to page ID Page view A Read aloud Add notes F & Harnischfeger Corporation 186-160 186-160 Harnischfeger Corporation CONSOLIDATED BALANCE SHEET (Dollar amounts in thousands except per share figures) CONSOLIDATED STATEMENT OF CHANGES IN FINANCIAL POSITION (Dollar amounts in thousands) - 18 October 31, 1923 1984 Year Ended October 31. 1983 1982 $ (34,630) S (76,531) Assets Current Assets Cash and temporary investments Accounts receivable Inventories Refundable income taxes and related interest Other current assets Prepaid income taxes $ 4,171 11.005 15,175 (34.630) (76,531) S 96.007 B7 148 144.312 1.296 5.502 14.494 349 259 5 64 275 63,740 153,594 12,585 6,023 14.222 314 449 13.552 3,397 4,834 (3.178) 15,241 7.891 2,077 1993) (500) 6,583 (17,205) Investments and Other Assets Investments in and advances to: Finance subsidiary, at equity in net assets Other companies Other assets 1406 8,849 4,445 13.969 27,263 6,704 2.514 6.411 15,629 (2.168) 7,039 (67) 11,805 2,034 72,172 Funda Were Provided by Applied to): Operations: Income (los) before cumulative effect of accounting change Cumulative effect of change in depreciation method Net Income (loss) Add (deduct) - Items included not affecting funds: Depreciation Unremitted earnings) loss of unconsoldated companies Deferred pension contributions Deferred income taxes Reduction in accumulated depreciation resulting from change in depreciation method Othernet Decrease in operating working capital (see below) Add (deduct) the effects on aperating working capital of: Conversion of export and factored receivable sales to debt Reclassification to deferred liabilities: Accrued pension costs Other abilities Foreign currency translation adjustments Funds provided by operations Financing, Investment and Other Activities Transactions in debt and capitalized lanse obligations- Long-Term debt and capitalized lease obligations: Proceeds from sale of 15% Senior Notes and 12% subordinated debentures, not of issue costs Other increases Reperyments Restructured debt Debt replaced, including conversion of receivable sales of $23,919, and short-lerm banknotes parable of 9.028 Operating Plants Land and improvements Buildings Machinery and equipment 23,919 9,419 59,083 120.99 109 451 1932591 22192 5472.704 10.370 60,377 122.154 192,901 (107.677) 85.324 $415.402 14,264 5.510 11.919 37.287 Accumulated depreciation 18.029 15.943) 16.270 $ 9,090 120,530 1,474 (161,500) 25,698 (9,4091 973 1760) 158,058 Llabilities and Shareholders' Equity Current Liabilities Short-term notes payable to banks by subsidiaries Long-term debt and capitalized lease obligations payable within one year Trade accounts payable Employee compensation and benefits Accrued plant closing costs Advance payments and progress bilings Income taxes payable Account payable to finance subsidiary Other current liabilities and accruals 37.716 15,041 2460 20,619 1,545 S 8.155 18.265 21.228 14.343 6,348 15,886 3.463 3,436 32.33 123 457 abli (39,496) 24107 (37399) 18209 (158.068) (780) 139023 (4.742) 1240169 14 273 29.673 117,217 449 Long-Term Obligations Long term debt payable to: Una siated lenders Finance subsidiary Capitalized lease obligations Not increase repayment) In short-term bank notes payable Net increase repayment) in debt and capitalized lease obligations Issuance of Common stock Common stock purchase warrants Salarind pension assets reversion Plant and equipment additions Advances to unconsolidated companies Other -- ne! Funds provided by (applied to financing, investment and other activities 21,310 6.683 39,2017 (5.546) (2882) 269 128,550 139,092 5.400 8.11.20 162 812 (1.871) 1531 (10,819) 848 7.870 1:42 k Type here to search ^ 0) 6:42 PM 1/19/202015
