F8: EPS, Cash Flows, NFP Accounting Flashcards
Calculate basic earnings per share
NI attributable to common shareholders less preferred dividends (including cumulative preferred dividends)
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Weighted average common shares outstanding
Calculate diluted earnings per share
NI available to common stock shareholder + interest on dilutive securities
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WA number of common shares (assuming all dilutive securities are converted to common stock)
How are stock splits and dividends treated in WA common shares in denominator of EPS?
They are treated retroactively as if they happened at the beginning of the year.
Contrast simple capital structure vs. complex capital structure.
Simple capital structure is when an entity only issues common stock. Complex capital structure is when an entity has securities that can potentially be converted to common stock and would therefore dilute EPS.
What are operating cash flows?
Cash receipts and disbursements from current assets and current liabilities (excluding current portion of note payable and long-term debt - these are financing)
What are Investing cash flows?
Cash receipts and disbursements from non-current assets, such as property, plant and equipment.
What are financing cash flows?
Cash receipts and disbursements from debt and equity.
How do changes in debit balance accounts affect cash flows?
They will have the opposite effect. Example: Increase in A/R will be a reduction to cash flow from operating activities.
How do changes in credit balance accounts affect cash flows?
They will have the same effect. Example: Increase in A/P will be an addition to cash flow from operating activities.
How do you account for cumulative preferred dividends in EPS calculation?
Cumulative preferred dividends are ALWAYS accounted for, regardless if they were paid or not. If the problem gives you cumulative preferred dividends and a preferred dividends paid, use the cumulative preferred amount.
How is a donor restricted pledge that will not be received until sometime in the future recorded?
Will be recorded at present value as support with donor restrictions
What type of restriction does a promise to contribute contain?
A time restriction.
Contributed services are recognized SOME of the time. Define SOME
Specialized skills. Otherwise would have been purchased. Measured Easily (at fair value).
Which items are typically involved in support services?
Fundraising, administration, management and member development.
What is included in Functional classifications?
Program services and support services
