Framework For Business Analysis[1]

Harnischfer: Turnaround StrategiesChange top managementReduce costRestructure the company’s businessRestructure the company’s financesHarnischfer: Accounting ChangesDepreciation methodAccelerated to straight-line, applied retroactively to all assetsDecrease depreciation expense, increased net income after tax for 1984 by $11.005 millionDepreciable lives and residual valuesIncreased pretax profit by $3.2 millionPension assumptionsIncreased from 8% in 1983 and 7.5 in 1982 to 9% in 1984Decrease pension expense by about $4 million