solved Summarize the case in half a page page (Font Size

Summarize the case in half a page page (Font Size 12/ Paragraph Spacing 1.5/ Font Type Times New Roman) and answer the following questions:Describe clearly each the accounting changes Harnischfeger made in 1984 as stated in Note 2 of its financial statementsWhat is the monetary effect of the depreciation accounting method change on the reported income in 1984?How and by how much ($) will this change affect profits in future years? (provided numerical answers)What is the monetary effect of the depreciation lives change? How and by how much ($) will this change affect future reported profits? (provided numerical answers)The depreciation accounting changes assume that Harnischfeger’s plant and machinery will last longer and will lose their value more slowly. Given the business conditions Harnischfeger was facing in its primary industries in 1984, are these economic assumptions justified?In Note 7, Harnischfeger describes the effect of LIFO inventory liquidation on its reported profits in 1984. Describe what is meant by LIFO liquidation and how liquidation affects a company’s income statement and balance sheet. What is the monetary impact ($) of this LIFO liquidation on 1984 income? (provided numerical answers)Note 8, states Harnischfeger’s allowance for doubtful accounts. Compute the ratio of the allowance to gross receivables (receivables before the allowance) in 1983 and 1984. What would the allowance have been ($) if the company maintained the ratio at the 1983 level? How much did the pre-tax income increase ($) as a result of the changed ratio in 1984? (provided numerical answers)Note 9, page 216, states that Harnischfeger decreased R&D expense in 1984 relative to the previous two years. Do you think this change was motivated by business considerations or accounting considerations? How and by how much ($) did this change affect the company’s reported profits in 1984? (provided numerical answers)Note 11, describes a number of changes in Harnischfeger’s pension plans in 1984. Describe these changes as clearly as you can. What are the economic consequences of these changes to Harnischfeger and its workers?How and by how much ($) did the pension plan changes affect Harnischfeger’s financial statements in 1984? Are these changes likely to affect future profits? If so by how much ($)? (provided numerical answers)Summarize all the accounting changes Harnischfeger made in 1984, and their monetary impact on revenues ($), pre-tax profits ($), and cash flows ($) in 1984. (provided numerical answers)The financial accounting statements are used by: investors, lenders, customers, employees, and governments in dealing with Harnischfeger. Among these groups, who is most likely to “see through” the above accounting changes, and who is least likely to do so?Are the accounting changes likely to help or to hinder Harnischfeger’s ability to implement its business plan? Be as specific as possible.