Just need the red X's

Analyzing and Interpreting Restructuring Costs and Effects Hewlett-Packard, Inc., reports the following footnote disclosure (excerpted) in its 201010 10-K relating to its restructuring programs. - The total expected cost of the plan is $46 million. - The total expected cost of the plan is $42 million. - In fiscal 2010, HP recorded restructuring charges of approximately $18 million. eliminated. associated with the planned elimination of approximately 5,000 positions. As of October 31,2010, approximately 4,200 positions had been eliminated. consolidate and vacate duplicative facilities. The restructuring plan is expected to be implemented over four years at a total expected cost of $3.4 billion. (a) Which of the following in NOT an example of a common non-cash charge associated with corporate restructuring activities? Olnventory revaluations OFixed-asset write-downs Olmpairment charges on intangible assets OSeverance paid to employees (b) Using the financial statement effects template, show the effects on financial statements of the (1) 2010 restructuring charge of $1,138 million, and (2) 2010 cash pa Use negative signs with your answers, when appropriate. (c) Assume that instead of accurately estimating the anticipated restructuring charge in 2010 , the company overestimated them by $30 million. (1) How would this overestimation affect financial statements in 2010 ? OUnderstates the expense and overstates pretax income by $30 million. The restructuring liability on the 2010 balance sheet will be overstated by $30 million. OOverstates the expense and understates pretax income by $30 million. The restructuring liability on the 2010 balance sheet will be overstated by $30 million. OOverstates the expense and understates pretax income by $30 million. The restructuring liability on the 2010 balance sheet will be understated by $30 million. OUnderstates the expense and understates pretax income by $30 million. The restructuring liability on the 2010 balance sheet will be overstated by $30 million. (2) How would this overestimation affect financial statements in 2011 when severance costs are paid in cash? OThe cash paid out in 2011 will be less than the 2010 accrual. Any excess (the $30 million) would reduce expense (increase profit) in 2011. OThe cash paid out in 2011 will be more than the 2010 accrual. Any excess (the $30 million) would increase expense (decrease profit) in 2011. OThe overestimation from 2010 will have no effect on the 2011 balance sheet or income statement. OThe cash paid out in 2011 will be less than the 2010 accrual. Any excess (the $30 million) would increase expense (decrease profit) in 2011. Analyzing and Interpreting Restructuring Costs and Effects Hewlett-Packard, Inc., reports the following footnote disclosure (excerpted) in its 201010 10-K relating to its restructuring programs. - The total expected cost of the plan is $46 million. - The total expected cost of the plan is $42 million. - In fiscal 2010, HP recorded restructuring charges of approximately $18 million. eliminated. associated with the planned elimination of approximately 5,000 positions. As of October 31,2010, approximately 4,200 positions had been eliminated. consolidate and vacate duplicative facilities. The restructuring plan is expected to be implemented over four years at a total expected cost of $3.4 billion. (a) Which of the following in NOT an example of a common non-cash charge associated with corporate restructuring activities? Olnventory revaluations OFixed-asset write-downs Olmpairment charges on intangible assets OSeverance paid to employees (b) Using the financial statement effects template, show the effects on financial statements of the (1) 2010 restructuring charge of $1,138 million, and (2) 2010 cash pa Use negative signs with your answers, when appropriate. (c) Assume that instead of accurately estimating the anticipated restructuring charge in 2010 , the company overestimated them by $30 million. (1) How would this overestimation affect financial statements in 2010 ? OUnderstates the expense and overstates pretax income by $30 million. The restructuring liability on the 2010 balance sheet will be overstated by $30 million. OOverstates the expense and understates pretax income by $30 million. The restructuring liability on the 2010 balance sheet will be overstated by $30 million. OOverstates the expense and understates pretax income by $30 million. The restructuring liability on the 2010 balance sheet will be understated by $30 million. OUnderstates the expense and understates pretax income by $30 million. The restructuring liability on the 2010 balance sheet will be overstated by $30 million. (2) How would this overestimation affect financial statements in 2011 when severance costs are paid in cash? OThe cash paid out in 2011 will be less than the 2010 accrual. Any excess (the $30 million) would reduce expense (increase profit) in 2011. OThe cash paid out in 2011 will be more than the 2010 accrual. Any excess (the $30 million) would increase expense (decrease profit) in 2011. OThe overestimation from 2010 will have no effect on the 2011 balance sheet or income statement. OThe cash paid out in 2011 will be less than the 2010 accrual. Any excess (the $30 million) would increase expense (decrease profit) in 2011