In this scenario, the U. S. economy contracted at a rate of 4.8 percent in the first quarter of the year. You will take on the role of an HR manager at an air transportation supply company that has faced significant revenue loss during the economic downturn and is now thinking of cutting costs. You have been asked to analyze employee performance over the last year, make sense of the data, and recommend a strategy for reducing the company budget by 10 percent.

Analyzing and computing accrued warranty liability and expense waymire company sells a motor that carries a 60-day unconditional warranty against product failure. from prior years' experience, waymire estimates that 2% of units sold each period will require repair at an average cost of $100 per unit. during the current period, waymire sold 69,000 units and repaired 1,000 units. (a) how much warranty expense must waymire report in its current period income statement? (b) what warranty liability related to current period sales will waymire report on its current period-end balance sheet? (hint: remember that some units were repaired in the current period.) (c) what analysis issues must we consider with respect to reported warranty liabilities?