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Essay

Deferred Taxes

Essay specific features

 

Issue:

Business

 

Written by:

Theodore H

 

Date added:

July 4, 2016

 

Level:

University

 

Grade:

A

 

No of pages / words:

1 / 237

 

Was viewed:

9673 times

 

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Essay content:

Therefore, the warranty reserve at the end of fiscal 2004 totaled to $114,905 (Exhibit 1). In addition, there was another contingency Maytag had to record in 2004 due to a front-load washer litigation settlement. The Income Statement reveals that the amount was reasonably predicted to be $33,500 (Exhibit 2)...
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However, the Consolidated Statement of Cash Flows shows a non-cash item in the amount of $23,092 added back in the operating activities section labeled “Front-load washer litigation, net of cash paid.” This amount represents the outstanding litigation accrual. By adding the outstanding litigation accrual to the warranty reserve, the contingent liabilities at the end of fiscal 2004 total $137,997...
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