Study notes Chap 1

Question 1

Operating margin

Answer 1

Operating margin = Operating income / Net sales

Question 2

Profit margin

Answer 2

Profit margin = Net income / Net sales

Question 3

Effective tax rate

Answer 3

Effective tax rate = Tax expenses / Income before income tax

Question 4

What is PUFI?

Answer 4

PUFI:
1. Pension adjustments
2. Unrealized gains and losses (from sale of debt securities and hedges)
3. Foreign currency items
4. Instrument-specific credit rick

Question 5

Form 10-K

Answer 5

The filling deadlines relative to fiscal year-end are as follows:
1. 60 days for large accelerated filers; ( $700 million market value)
2. 75 days for accelerated filers; and ( $75 to $700 million market value & $100 million revenue)
3. 90 days for all other registrants. ($100 million revenue)

Question 6

Form 10-Q

Answer 6

The filling deadlines relative to fiscal quarter-end are as follows:
1. 40 days for large accelerated and accelerated filers; and
2. 45 days for all other registrants.

Question 7

Basic EPS

Answer 7

Basic EPS = Net income - Preferred dividends / WACSO

Question 8

Diluted EPS

Answer 8

Diluted EPS = Income available to the common stock shareholder + Interest on dilutive securities / Weighted average number of common shares (assuming all dilutive securities are converted to common stock )