F1-M2 EPS & Pub Co Reporting Topics

Question 1

File on Form 8-K, except:

Answer 1

Answer: The quarterly results of operations and financial condition of a registrant

The form reports on major corporate events, including corporate asset acquisitions/disposals, accountant changes, financial statement changes, management changes, changes in securities, etc.

Quarterly results of operations will be reported using Form 10-Q

8-k does:
-Creation of an obligation under an off-balance sheet arrangement of a registrant
-unregistered sale of equity securities
-Change in a registrant’s certifying accountant

Question 2

No. of shares used to determining basic earnings per share for the current year?

Co. declared and issued 6% stock divdend on 100k shares on o/s CS on 12/1/Current Year

There was no other common stock activity during the year

Answer 2

100,000 o/s CS
0.06 Stock Divid
6,000 6% stock divd

100,000 o/s CS
6,000 6% stock divd
106,000 # of Shares (ANSWER)

Question 3

Maximum number of days after the company’s fiscal YE that the company has to file Form 10-K with the SEC:

Answer 3

75 days

An accelerated filer is an issuer:
-with a public float of greater than or equal to $75M
-subject to the Securities Exchange Act’s reporting requirements for greater than or equal to 12 months;
-that previously filed at least one report;
-which is not eligible to file quarterly and annual reports on Forms 10-QSB and 10-KSB

Smaller reporting companies, which are entities with annual revenues of less than $100M,
are excluded from the definition of large accelerated filers or accelerated filers.

Question 4

Basic EPS $1.29, tax rate 30%, which of the following securities is dilutive?

Answer 4

7% Convertible bonds, issued at part, with each $1000 bond convertible into 40 shares of comomon stock

A dilutive security will produce an earnings per share number below basic earnings per share.
The formula for basic EPS = (Income Available to common shareholders) / (Wtd Avg. # of CS o/s)

Basic EPS is $1.29, and a dilutive security will result in a lower earnings per share.

If the 7% convertible bonds are converted, the company will save $49 on each bond ($1,000 x 0.07 x (1-0.3)), but new shares of stock will be issued.

This equates to $1.225* per 1 new share which is a lower ratio than $1.29 per share, so these securities will be dilutive.

*$49/40shares