Tips for How to Prepare for an Oral Exam

Oral exams⠁  Ã¢â‚¬â€tests during which teachers ask students to answer exam questions aloud⠁  Ã¢â‚¬â€can be undoubtedly stressful, but there are a number of ways to prepare for nontraditional testing or reporting methods like this. Though oral exams are most common for language learners, they are increasingly prevalent across other subjects because they allow teachers to cater syllabuses to students with a variety of  learning styles. Key Takeaways Stay positive during your exam preparations.Oral exams can be stressful, but they are valuable practice for potential future interviews.Know your subject better than you think you need, and practice using movement intentionally to emphasize your main points.Don’t forget to eat well, sleep enough, and drink plenty of water leading up to your exam. Exercise can also help release nervous energy.Take your time answering questions during your exam, and don’t be afraid to ask for help if you need it!   Stay Positive Instead of psyching yourself out about what could possibly go wrong, remind yourself how much you have learned and what you have the chance to share with your teacher. An optimistic outlook can banish nerves and bring excitement to any exam. Even if you prefer traditional pen-and-paper tests, oral exams can help you succeed beyond the classroom. They provide you with valuable interview-like experience to prepare you to smash your future educational and career goals. Here are a few tips and tricks to help you prepare for your next oral exam.   Know Your Subject Successfully completing an oral exam starts with knowing the material you will be discussing. The best part about these kinds of tests is that you already have all the answers. Teachers won’t ask you anything you haven’t been taught, so you will only need to discuss the material that has been presented to you in lectures, text, and video. With that being said, there are a few things that will ease some of the pressure of reciting this learned material.  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Dig Deeper The best way to start preparing for an oral exam is to take a personal interest in the material. Knowing more about your topic than what is mandatory will help you predict questions that your teacher might ask. It will also give you more to talk about. Learn the background story of historical figures, authors, scientists, and explorers, even if you don’t think you need to. Many of the world’s greatest mathematical and scientific discoveries were only made because of something that happened in the discoverer’s personal life. Did you know that Darwin was going to turn down his trip to the Galapagos because his father disapproved? The person we have to thank for On the Origin of Species is Darwin’s uncle (and father-in-law) who firmly believed Darwin’s discoveries would provide evidence to support Biblical claims. Not only does digging deeper give you a better understanding of your topic, but you also have more content to talk about. If you if fully understand the ins and out of your subject, you won’t ever run out of things to say.   Predict Questions Now that you know your subject, you can begin to contemplate what your teacher might ask you. The best place to start is with the material you already have. Use previous quizzes and exams, essay prompts, and even the questions at the end of chapters to help you formulate answers. It will also be helpful for you to understand the general theme and purpose of your exam. Knowing the purpose of your exam–the topic on which you are being tested–makes crafting answers easier because you have a goal in mind. For example, if your geography teacher asks you how the climate and geographical feature affected the U.S. troops in Vietnam, you know that your answer should be built off of mountains, rivers, and weather patterns more than the success or failure of the troops because the exam is about geography. Similarly, your French teacher may ask you about a film you recently saw, but the content of the film doesn’t matter as much as your ability to conjugate verbs and use the past tense. When predicting questions, remember that one question can best be asked a hundred different ways. Words like outline, describe, and detail are different ways of saying â€Å"tell me about†¦Ã¢â‚¬  Be prepared for these trigger words by asking yourself the same question a few different ways. â€Å"Chunk† Your Content When crafting your answers, try to â€Å"chunk† or group bits of information together rather than trying to remember everything as a whole. Think about the way a book is written–not as one massive piece of text, but a story divided into digestible bits with a common thread that ties them all together. Turn your exam into a story so when your teacher asks you about the economic climate of Thailand after colonization, you can follow your thread through your story without being overwhelmed, and you can easily recall and answer confidently that Thailand was never technically colonized. Use Intentional Movements It is perfectly normal to move around when you are nervous–to fidget with your clothes, to not sit still, to pace back and forth–because movement is a way to release some of that nervous energy, but it can detract from what you are saying because your exam administrator is more focused on your actions. In order to combat distraction while still releasing nervous energy, practice intentional movements. Watch Yourself The best and easiest way to practice is to first know how you move. Sit or stand in front of a mirror or use a camera or a cell phone to you can record and re-watch yourself answering questions. Don’t think too much about how you should or shouldn’t move; this is just a self-assessment. Once you understand how you tend to release nervous energy, you can take the appropriate steps to make your movements more intentional and useful for your exam. Watch Others The greatest presenters and speakers in the world aren’t those who sit or stand completely still, but rather those who use movement and nonverbal communication to emphasize what they are saying. For example, speakers will often take three or four long strides toward the audience to emphasize the importance of what they are saying. They use hand gestures and facial expressions that add to the significance of understanding of a topic. Before your oral exam, take some time to watch other speakers and presenters. This can be as simple as watching TED Talks on YouTube. Note how speakers sit, stand, or walk, how they gesture, and how they answer questions. Develop Intentional Movement Practice answering questions using movements and nonverbal communication that you have observed. Lay newspaper on the floor or under your seat to make you more conscious of your movements. If you can’t seem to steady your hands, hold on to a paperclip during your exam. Remember, moving to release nervous energy is perfectly normal, and the most important focus for your oral exam is the content, not your gestures. Physical and Mental Wellness You might have spent days, weeks, or even months preparing for your exam, but if you drink too much coffee or don’t get enough sleep, all that preparation could be in vain. Remember that taking care of yourself, both physically and mentally, is reflected in your capabilities and how you perform. Take care of your mind and body, and in turn, they will take care of you.   Nutrition In the days leading up to your exam, drink enough water (aim for eight large glasses every day), get enough sleep (adults need no less than seven hours of sleep per night), and eat whole, healthy foods. On the morning of the exam, eat a light, energizing breakfast, and limit your caffeine intake. You don’t need any extra jitters!   Exercise Remember that nervous energy we talked about earlier? It is caused by cortisol, the stress hormone. Increasing your heart rate eliminates cortisol. If you can, try to get to the gym in the days leading up to your exam.   Presentation There is something to be said about the clichà ©, dress well, test well. Pick out your clothes the night before so you don’t have to fumble through your closet in the morning. Wear something comfortable and breathable that you won’t need to tug at during your exam.   Take Your Time Teachers firing questions at you can feel overwhelming, but remember that there is no need to rush into your answers. Take a moment after each question to digest what information has just been requested from you and organize your thoughts accordingly. If your teacher asks you to describe Christopher Columbus’s voyage to the Americas, take a moment to recall what you know about Columbus. You know how the voyage was funded, you know the names of the ships, you know how long the journey took because you prepared for the exam. Now that your thoughts are in order, begin to tell your teacher the story of the legendary voyage across the sea.   Ask For Help Your teachers and professors want you to succeed. They are there to help you reach your goals and prepare you for future career endeavors. Visit them before or after school, during breaks, at lunch, or during office hours. Meet with them if you are confused or stuck or you simply want to talk through an idea. Teachers are also normally the ones administering the oral exams, meaning they have created the criteria you need to meet to be successful. They are your most valuable resources and your strongest allies.

critical appreciation - 1066 Words

Critical appreciation of a poem is defined as the critical reading of a poem. The meaning of its words, its rhyme, scheme, the speaker, figures of speech, the references to other works (intertextuality), the style of language, the general writing style of the poet ( if mentioned), the genre, the context, the tone of the speaker and such other elements make up the critical reading or appreciation. It does not mean criticising the poem. A critical appreciation helps in a better understanding of the verse. Meaning- Read the poem more than once to get a clear idea of what the speaker is trying to say. Look up the meanings of difficult or unusual words in a thesaurus. The title of the poem is a key to the general meaning and summary of the†¦show more content†¦There are several genre- satire, mock-epic, ballad, lyric, ode, parody etc. It is the same as critical analysis of a poem, that is, you should explain its meaning and also point out the resources the poet uses in order to create meaning, as follows: 1. sum up the thesis (= subject) and analyze the title (what does it mean?); 2. discuss the point of view (who is the I [the persona] in the poem?); if it is in the third person (he, she or they), identify the narrator; 3. analyze the language (use of words, symbols, contrasts), the tone of voice (sad, joyful, ironic, etc.) and alliterations (if any); discuss the effects created; 4. discuss the poem s formal structure: (A) talk about the genre (sonnet, lyric, elegy, etc.) and the effects produced by any of these on the poem; (B) analyze stanzas, verses, rhyme scheme, etc. 5.discuss the poem s thematic structure (meaning, imagery, etc.); 6. mention any allusions to other poems, poets or even to the Bible (what does the poem evoke?); 7. discuss social and/or cultural context: if the poet refers to world events (such as wars, historical facts, etc.) In this context, â€Å"critical† means paying attention to the elements of construction – rhyme scheme, meter, stanza arrangement, imagery, etc. – that give the poem its balance, beauty, and effectiveness. Writing an â€Å"appreciation† requires a dissection of the way the poet has achieved his/her effects, and should be constructed like any essay –Show MoreRelatedCritical Appreciation Of Sonnet 291297 Words   |  6 PagesIn Shakespeare’s Sonnets, the narrator describes the rollercoaster that is his love life. While the first few poems of what is his love life are very romantic and passionately sexual towards to his love, a man. The narrator’s describes his lover as someone who even in darkness, he can break it and give him a sunny day. We see this specifically in sonnet 29, where the narrator feels down but he is giv en a break once he sees the person he loves. In Sonnet 29, line 1 the narrator tells readers, â€Å"whenRead MoreCritical Appreciation Of William Wordsworth941 Words   |  4 PagesAuthor Background: Born April 7th 1770 in Cockermouth, England, William Wordsworth grew up without his mother after the age of 8, and he grew to love poetry at the Hawkshead Grammar School. Wordsworth revolutionized literature with his philosophy that humans become more corrupt as they get older, losing their naivete in their perception of the world and nature around them. Wordsworth was one of the most influential nature poets in England, and he worshipped nature in his poems as a more superiorRead MoreCritical Appreciation Of The Prince Machiavelli773 Words   |  4 PagesThroughout his literary piece The Prince, Machiavelli utilizes a series of chapters to evince his beliefs and views of the necessary actions and qualities needed to effectively govern over a given political system. Most notably in chapter XVII, Machiavelli examines the Prince, or the ruler himself, and ultimately rationalizes that it is most advantageous for a ruler to be â€Å"feared† rather than â€Å"loved† given t he impossible dichotomy of a ruler being both feared and loved by the people he must serveRead MoreCritical Appreciation Of Sappho Poem799 Words   |  4 PagesLittle is known about the Greek Poet Sappho, like her poems, pieces of her life have been lost over time. Here is what we know for sure. Sappho lived on the island of Lesbos around the turn on the seventh and six centuries BCE. She composed songs with a lyre accompaniment known as lyric poetry. These poems were collected into nine volumes and what has survived exist in fragments. (cite to come) Fragment 16 is a poem about love. This poem’s desires to answer the question what is beauty? Our PoemRead MoreSample Resume : Strobelli s Pizza1419 Words   |  6 Pagesdoubles as well as the owner working 12 shifts a week than the business probably would have failed. But Strobelli’s has built such a strong customer base and it survived, although the loss of almost all employees in the workforce had a substantially critical effect due in part to lack of qualified people to help train new employees. It started a chain reaction that has made it very hard to keep employees. Over the past year the turnover rate at Strobelli’s is 227% and the costs of that are ruining theRead MoreCritical Appreciation Of Henry Wadsworth Longfellow768 Words   |  4 PagesHenry Wadsworth Longfellow was a poet who will forever be remembered and appreciated for his non-discriminatory views on different cultures and parts of the world, which inspired his work and poetry to be written i n a language meant for all, specifically explained through figurative language and similes. Born in Maine early 19th century, Henry Wadsworth proceeded to travel the world, specifically twice to europe before settling down and taking up teaching duties at Harvard officially in 1837. DuringRead MoreThe Self Through Self Examination1644 Words   |  7 Pagesoneself fully? That is one question that we will never know the answer to. To properly interrogate yourself is to learn how to appreciate yourself for not just your best qualities, but your shortcomings as well. This kind of appreciation for ourselves is the same appreciation that we should have for all the life around us. To appreciate yourself and what you have in life is an essential part to living a mindful existence; it’s an essential part to curbing desire in the face of selfishness, and it’sRead MoreCritical Appreciation of Robert Browning Poems Essay1296 Words   |  6 PagesCritical Appreciation of Robert Browning Poems Robert Browning was one of the great poets of the Victorian age. He was on born 7th May 1812 in Camberwell and he died on the 2nd December 1889. Robert Browning got secretly married to Elizabeth Barrett in 1846 and went on to live in Italy. Browning became an admirer of Elizabeths Barrett’s poetry in 1844. He began corresponding with her by letter. This was the start of one of the worlds most famous romances. Their courtshipRead MoreThe Modern Mentality Regarding the View of Art1008 Words   |  5 Pagesput into trying to create art? Today, art has become such a general term. The onslaught of commercialism, hyper-stimulation, and modernization has caused people to lose an appreciation for art held by our forefathers, an appreciation that is caused by and affects much more than simply the way we view art, an appreciation that we need to re- In days past, art was considered something much different. The scope for art was narrower, and so the connotation that something qualified as artRead MoreCritical Appreciation Of Robert Frost, By Robert Frost1216 Words   |  5 PagesThe author of this poem is Robert Frost. In his life the main reason I think he wrote this poem was because he saw people and things be gold then fade away. It was written in 1923 in New Hampshire. The poem is in the original language. This poem is not a series with other poems it is just one single poem. It was in the early 90s so I would think it would be related to the industrial age at the time in New England. The style is a narrative. Its describing how even though everything seems gold and

Essay about Could the American Revolution Been Avoided

Could Have the American Revolution Been Avoided? As Benjamin Franklin once said, â€Å"No gains without pain.† This could not be more of a true statement when speaking of the American Revolution. There are so many factors that are said to have caused it, that its hard to determine what never needed to happen. Because of the French and Indian War, the British were suffering from debt. They needed the find a way out; therefore, new laws and acts were established. If the British would have treated the colonists as friends instead of their instant way out of dept, we could have never seen independence. Another reason that the American Revolution couldn’t have been avoided; because the colonists had already learned to fight, were tired of British†¦show more content†¦Even if the British accepted some ideas of the colonies and were a little more opened minded to the colonists, the war couldn’t have been avoided because the colonies wanted to become independent . They wanted to break away from the king. By this time, their patience was growing thin and the power that the king had was being abused. Lastly, we had two important people who helped the colonies colonize, which was John Adams and Thomas Jefferson. In 1761, John Adams began to think and write and act against British measures that he believed infringed on colonial liberties. Thomas Jefferson was the primary author of the Declaration of Independence, although his first draft was amended after consultation with Benjamin Franklin and John Adams and changed by Congress. Jeffersons reference to the commitment of colonists to the crown was struck; also deleted was a part that censured the monarchy for striking slavery upon America. They had two powerful people fighting for the independence for the colonies. In conclusion, this is why I feel as though the American Revolution couldn’t have been avoided. The British were suffering from debt; the colonists had already learned to fig ht; and they had two important and strong leaders. If you push something hard enough, it will fight back. This is what caused the American Revolution. In my opinion, I would say it wasShow MoreRelatedCauses Of The American Revolution1638 Words   |  7 Pages During the period between the French and Indian war and the American Revolution, there were many events that eventually lead to the American Revolution. Most of these events had good intentions but in the end, they ended up causing drama and uneasiness between the colonies and the British. It can be proved that the American revolution could have been avoided. The first major event was the Proclamation of 1763. The law was passed forbidding settlement west of the Appalachian Mountains. TheRead MoreThe Revolutionary War : Wim Klooster s Book Revolutions1114 Words   |  5 PagesKlooster’s book Revolutions in the Atlantic World expresses the deep roots of the revolutionary war period throughout various locations and circumstances. He strives to express the causes, effects, and the political civil war which caused the great uproar in the once colonial lands. This shift in history is noted in Klooster’s book and expanded upon in his chapter entitled â€Å"The Revolution’s Compared.† He notes the various commonalities between the American, French, Haitian, and Spanish American revolutionsRead MoreEssay on The Inevitabilty of the American Revolution1720 Words   |  7 Pagesrights of the individual then rebellion is justified (Greene, 96). Due to the development of powerful colonial cities, the end of saluta ry neglect of the colonies by Britain, and the increasing tension between Britain and the colonies, the American Revolution was inevitable. 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These causes in themselves could not have sparked such a massive rebellion in the nation, but as the problems of the colonies cumulated, their collective impact spilt over and the American Revolution ensued. Many say that this war could have been easily avoided and was poorly handled by both sides, British and American; but as one will see, the frame of thought of the colonists was poorly suited to accept British measures which soughtRead MoreBritish Were Responsible For Causing The American Revolution1030 Words   |  5 PagesThe British were responsible for causing the American Revolution because they put unfair limitations on the colonies. One of Great Britain’s limits on the colonies was the Proclamation of 1763. The Proclamation of 1763 states that the colonies can not expand their reign west of the Appalachian Mountain and the Indians could not move east towards the East Cost (Hakim 36). Britain was scared that as the colonies grew in population and in power, along with the Indians and French that were in the NewRead MoreThe American Revolution877 Words   |  4 Pagespeople believe the American Revolution is strictly liberal, in truth it is conservative evidenced by the new British policies, colonial reactions and the examinations of what it means to be conservative vs. liberal. The American Revolution was triggered, by many laws that were passed between 1763 and 1775 that controlled trade and taxes. This legislation caused pressure between colonists and imperial officers, who had made it clear that the British Parliament would not address American complaints relatingRead MoreThe Battle Of The Colonists By Nathaniel Bacon891 Words   |  4 Pagesfollowing the slaughter of several hundred colonists by the Native Americans. Their leader, Nathaniel Bacon, claimed that he was fighting for the colonists best interests because it was his duty to protect them. 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This would give Sarson an American viewpoint on many aspectsRead MoreDifferences Between the French and American Revolutions1362 Words   |  6 PagesDifferences in the American and French Revolutions Sometimes a revolution can take place within a country against its own current state of government, other times a revolution can take place externally to rid a country of another countrys influence. There are many components that are involved in a revolution taking place. One must consider the causes or reasons of the situation, the events that occur during the revolution and the effects or aftermath that had been created by that revolution. There were

Harnischfeger Corporation Essay Example For Students

Harnischfeger Corporation Essay Harnischfeger Corporation Teaching Note INTRODUCTION The purpose of the Harnischfeger Corporation case is to expose students to the managerial motives for making major financial reporting policy changes. Generally accepted accounting principles (GAAP) allow companies wide latitude in the choice of accounting policies. After a firm chooses a set of accounting policies, current accounting rules permit changes from one alternative policy to another at the discretion of the management. Since reported accounting figures are widely used by a number of external parties, managers of firms have incentives to choose accounting policies in order to influence the behavior of these parties. A variety of managerial motives for accounting policy decisions have been identified in the accounting literature. The Harnischfeger case is designed to encourage students to explore these motives. Harnischfeger Corporation, a large New York Stock Exchange company, faced a financial crisis in 1982. New management was appointed to turn the company around. As part of its restructuring strategy, the new management team made a number of financial reporting policy changes in fiscal 1984. Together, these changes accounted for most of Harnischfegers reported 1984 profits. More significantly, these changes represented a substantial switch from the companys earlier conservative reporting philosophy to a more aggressive one. The case describes the companys financial crisis, the turnaround strategy of the new management team, and the accounting policy changes that took place in 1984. This case is a by-product of my field research, which is described in the paper, The Anatomy of an Accounting Change. This paper is published in Accounting and Management: A Field Study Perspective, edited by William Bruns and Robert Kaplan (Harvard Business School Press, 1987). This teaching note was prepared by Krishna G. Palepu. Copyright ( 1987 by the President and Fellows of Harvard College. Harvard Business School teaching note 5-187-152. This case can be use d in several different ways. At the Harvard Business School, the case has been used as part of a module dealing with the accounting policy decisions of firms and the stock markets ability to see through these decisions. The sample assignment described below assumes that the case is used by itself in a second-year MBA course on financial statement analysis or a course on financial reporting. QUESTIONS FOR STUDENTS The following set of questions are in the textbook and are designed for use in a class where the instructor prefers to provide a minimum level of structure to the students: 1. Identify all the accounting policy changes and accounting estimates that Harnischfeger made during 1984. Estimate, as accurately as possible, the effect of these changes on the companys 1984 reported profits. 2. What do you think are the motives of Harnischfegers management in making the changes in its financial reporting policies? Do you think investors will see through these changes? 3. Assess the companys future prospects given your insights from questions (1) and (2) and the information in the case on the companys turnaround strategy. For instructors who prefer to use a more structured approach to teaching the case, the following questions will guide students through the material: 1. Describe clearly the accounting changes Harnischfeger made in 1984 as stated in Note 2 of its financial statements (pages 212-213 of the text). . What is the effect of the depreciation accounting method change on the reported income in 1984? How will this change affect profits in future years? 3. What is the effect of the depreciation lives change? How will this change affect future reported profits? 4. The depreciation accounting changes assume that Harnischfeger’s plant and machinery will last longe r 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? 5. In Note 7 (pages 215-216), 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. 6. Note 8, page 216, 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? . Note 9, page 216, states that Harnischfeger decreased its RD expense in 1984 relative to the previous two years. Do you think this change was motivated by business considerations or accounting considerations? How did this change affect the company’s reported profits in 1984? 8. Note 11, pages 216-217, describes a number of changes in Harnischfeger’s pension plan s in 1984. Describe these changes as clearly as you can. What are the economic consequences of these changes to Harnischfeger and its workers? 9. How did the pension plan changes affect Harnischfeger’s financial statements in 1984? Are these changes likely to affect future profits? 10. Summarize all the accounting changes Harnischfeger made in 1984, and their effects on pre-tax profits and cash flows in 1984. 11. Accounting statements are used by investors, lenders, customers, employees, and governments in dealing with Harnischfeger. Among these groups, who is most likely to â€Å"see through† the above accounting changes, and who is least likely to do so? 12. Are the accounting changes likely to help or to hinder Harnischfeger’s ability to implement its business plan? Be as specific as possible. 3. Overall, what is your assessment of Harnischfeger’s future as of 1984? Handout: (To be handed out at the end of the class. ) Krishna Palepu. The Anatomy of an Accounting Change. In Accounting and Management: A Field Study Perspective, edited by William Bruns and Robert Kaplan. Boston: Harvard Business School Press, 1987. CASE ANALYSIS AND TEACHING STRATEGY I begin the class by mentioning the fo llowing recommendation of a leading Wall Street investment house on Harnischfegers stock just prior to the release of the companys 1984 Annual Report: We recommend the stock of Harnischfeger Corporation for purchase in speculative accounts because we expect the company to report a modest profit this year and untaxed earnings of $3. 00 per share in 1985, following ten years of deteriorating financial statements and two years of large losses. Earnings power, assuming a sustained recovery of the companys markets, could be $4. 00-$6. 00 per share in the 1986-87 time period. The Harnischfeger stock is selling at less than three times these peak earnings (were they taxed) and at a slight discount to book value. I ask how many students would follow the above investment recommendation and invest in Harnischfegers common stock after seeing the companys 1984 Annual Report, and then I take a vote. This gets the class thinking about the overall effectiveness of the companys strategy and its financial accounting decisions. My experience has been that most of the students are skeptical about the company at this point and therefore would not want to invest in the companys stock. I start the discussion by calling on one of these students and asking him or her to evaluate the companys 1984 profit performance. The few students who want to invest in the company provide an interesting counterpoint of view and should be called on later in the class. Discussion of Question 1 Harnischfegers accounting decisions account for a large portion of the companys reported profits in 1984. Students identify a number of these decisions and their profit impact. 1. The depreciation method was changed from accelerated to straight-line, applied retroactively to all assets. The cumulative effect of this change, not including the reduction in the current years depreciation expense, increased after-tax net income for 1984 by $11. 05 million. The company did not report the reduction in the depreciation expense in 1984 due to this change. (See Exhibit 4, Note 2, in the case. ) 2. The company also changed its estimated depreciation lives of certain US plants, machinery, and equipment, and the estimated residual values of certain machinery and equipment effective the beginning of the fiscal year 1984. This change in creased the pretax reported profit by $3. 2 million. Since the company paid no domestic federal income taxes in 1984, after-tax income also increased by the same amount. (See Exhibit 4, Note 2, in the case. 3. During 1984, the company changed its rate of return assumption for determining pension expense. The rate assumed was 9% in 1984 compared to 8% in 1983 and 7. 5% in 1982. During the year, the company also restructured its pension plan and recaptured $39. 3 million in excess plan assets. The effect of the change in the rate of return assumption for the pension plan and the plan restructuring reduced the pension expense by approximately $4. 00 million in 1984. (See Exhibit 4, Note 11, in the case. ) 4. The liquidation of LIFO inventories resulted in a net income increase of $2. million. (See Exhibit 4, Note 7, in the case. ) 5. The companys provision for doubtful accounts receivables as a percentage of total receivables was 8. 4% in 1984. The corresponding percentage in 1983 was 11. 3%. If the company maintained the same percentage provision in the two years, the bad debt expense in 1984 would have been $1. 5 million more than the reported expense. (See Exhibit 4, Note 8, in the case. ) 6. Effective fiscal 1984, the company changed the financial year ending from July 31 to September 30 for certain foreign subsidiaries. Could Genocide have been prevented EssayWe wish to tell the truth but do not want to be overly conservative in doing so. When the outside world compares our financial performance with that of other companies, they may or may not take the time and effort to untangle the effects of the differences in financial policies that various companies follow. My own belief is that people adjust for the obvious things like one-time gains and losses but have difficulty in adjusting for ongoing differences. In any case, these adjustments impose a cost on the user. If people adjust for the differences in accounting policies when they ompare us with other companies, then it should not matter whether we follow conservative or liberal policies. But suppose they do not adjust. Then clearly we are better off following the more liberal policies than conservative policies. I am not sure whether people make the adjustments or not, but either way we wish to present an optimistic version of the picture and let people figure out what to do with the numbers. As a company you have to put the best foot forward if you want to raise capital, convince customers that you are a viable company, and attract talented people to work for the company. I feel that the financial reporting should help rather than hinder the implementation of our operating strategy. In my opinion, the changed accounting format highlights the effectiveness of our strategy better than the old policies do. The instructor can sum up the class discussion on question (2) by mentioning the views of the management described above. Discussion of Question 3 After completing the analysis of Harnischfegers accounting policy changes, the class should be asked to assess the companys future. At this point, I go back to my original question to the class, namely, Is it worthwhile to invest in the companys stock in early 1985? I call on a student who considers the companys stock a good investment and ask him or her to explain why. Harnischfegers turnaround strategy consists of four elements: (1) changes in top management, (2) cost reductions to lower the companys break-even point, (3) reorientation of the companys business, and (4) restructuring the companys finances to facilitate the implementation of the reorientation strategy. The changes in the top management seem to be good. The new chief executive officer (CEO) has considerable experience in Harnischfegers industry. The new CEO demonstrated his credibility with the financial community by successfully negotiating with the companys lenders to restructure the companys debt. The new management has taken several steps in the right direction. The companys cost-reduction programs seem to be paying off. These programs were helpful in reducing the companys losses in 1984. The financial management of the company also seems to be sound. The cost-reduction programs and the pension restructuring have improved the companys cash flow. The total cash-flow analysis, shown in Exhibit 1, indicates that the company has been able to generate positive cash flow from its operations in 1984. The company raised substantial new capital through a public offering of debentures and common stock and used the proceeds to pay off all of the companys restructured debt. Finally, the companys business strategy seems to be sound. The management recognized the potential to exploit the companys strength in the material handling equipment business. Through its Harnischfeger Engineers subsidiary, the company planned to expand in this area and concentrate on the high margin systems business. This strategy is likely to help the company to move away from the mining and construction equipment business, which is a low-growth and cyclical industry, to a higher-growth and more stable business. Students who are optimistic about the companys future cite the above factors as the reasons for their support for the company and its management. They argue that these factors indicate that the companys new management has the right ideas and knows how to turn the company around. These students suggest that the managements accounting decisions were part of its attempt to implement the companys strategy and are therefore constructive. The instructor should wrap up the case discussion by reviewing the companys motives for its accounting decisions. The instructor should point out that understanding these motives is essential for an analyst who is interested in assessing the companys current performance and its future potential. The instructor may end the class by taking a second vote on the investment potential of the companys stock and sharing with the class the subsequent events described below. SUBSEQUENT DEVELOPMENTS The following events describe the developments subsequent to the time of the case. As can be seen, Harnischfeger seems to have succeeded in implementing its strategy effectively. Also, the company continued to liberalize its financial reporting policies. 1985 1. The company changed its accounting for duration patterns and tooling. Previously, the cost of the patterns and tooling was expensed in the year of acquisition. Under the new method, these costs are capitalized and amortized over their estimated useful lives. 2. Harnischfeger reported a net profit of $0. 74 per share for fiscal 1985. The accounting change described above contributed $0. 24 per share to the reported profits. 3. The company raised $147 million by issuing preferred stock. 1986 1. Mr. Goessel was appointed as the chairman and CEO of the company, and Mr. Grade was appointed as the president and chief operating officer (COO). Previously, Mr. Goessel was the president and COO, and Mr. Grade was the CFO. 2. Harnischfeger acquired Beloit Corporation, a producer of papermaking machinery and systems, for $175 million in cash. Later in the year, stock equivalent to a 20% equity interest in Beloit was sold to Mitsubishi Heavy Industries, Ltd. , for $60 million in cash. 3. The company acquired Syscon Corporation, a firm based in Washington, DC for $92 million in cash. Syscon developed advanced computer systems for military markets. 4. Harnischfeger announced a plan to sell the companys Construction Equipment Division for approximately $17 million in cash and $55 million in debentures. 5. The company reported that Harnischfeger Engineers received a major order for the design of an automated car assembly plant. . Harnischfeger reported a net loss of $1. 14 per share for fiscal 1986. This consisted of a profit of $2. 15 per share from continuing operations, a loss of $4. 45 per share from discontinued operations (Construction Equipment Division), and a gain of $1. 16 per share from the adoption of the new pension accounting rules. 1987 1. Harnischfeger received a takeover offer from Columbia Ventures, Inc. , fo r $19 per share in cash. The company considered the offer inadequate and rejected it. Exhibit 1Total Cash-Flow Analysis ($ in thousands) |1984 |1982 |1981 | | | | | | |Working capital from operations | $ 2,961 | $ 1,763 | $ (55,902) | |(Increase)/decrease in accounts receivable |(23,908) |(5,327) |42,293 | |(Increase)/decrease in inventories |9,282 |56,904 |26,124 | (Increase)/decrease in refundable income taxes and related interest | | | | | |11,289 |(2,584) |(6,268) | |(Increase)/decrease in other current assets |259 |10,008 |(439) | |Increase/(decrease) in accounts payable |16,488 |(1,757) |(3,302) | |Increase (decrease) in employee compensation and benefits payable | | | | | |698 |(15,564) |(3,702) | |Increase/(decrease) in accrued plant closing costs |(3,888) |(14,148) |20,496 | |Increase (decrease) in other current liabilities | (3,181) | (15,927) | (3,030) | |Cash from operating cycle | $ 10,000 | $ 13,368 | $ 16,270 | |Minus plant and equipment additions | (5,546) | (1,87 1) | (10,819) | |Cash before dividends, investments, and external financing | | | | | |$ 4,454 |$ 11,497 |$ 5,451 | |Minus cash dividends | 0 | 0 | (2,369) | |Cash before investments and external financing | $ 4,454 | $ 11,497 | $ 3,082 | |Minus advances to unconsolidated companies |(2,882) |0 |0 | |Plus other | 269 | 1,531 | 848 | |Cash before external financing | $ 1,841 | $ 13,128 | $ 3,930 | | | | | | |External Financing: | | | | | | | | |Proceeds from senior notes and subordinated | | | | |Debentures |$ 120,530 |$ 0 |$ 0 | |Conversion of export and factored receivable sales to debt | | | | | |0 |23,919 |0 | |Restructured debt |0 |158,058 |0 | |Debt replaced, including conversion of receivable sales of 23,919 | | | | | |0 |(158,058) |0 | |Repayments of debt |(161,500) |(760) |(9,409) | |Increase (repayment) of short-term bank notes payable |2,107 |(3,982) |(2,016) | |Other increases in debt |1,474 |0 |25,698 | |Issuance of common stock |21,310 |0 |449 | |Issuance of commo n stock warrants |6,663 |0 |0 | |Salaried pension assets reversion | 39,307 | 0 | 0 | |Cash from external financing | $ 29,891 | $ 19,177 | $ 14,722 | |Net increase (decrease) in cash and temporary investments | | | | | |$ 31,732 |$ 32,205 |$ 18,652 |