Reporting to the SEC Bruse Company common shares are listed on the American Stock Exchange and are actively traded. In a recent article in one of the financial publications, you read about a number of interesting happenings at Bruse Company, and you want to learn more about the events before deciding whether to purchase shares for your retirement fund. For each item listed below, indicate which of the documents filed with the SEC would provide information about that item. When the item is found in the annual report, indicate where in the report it would be found.

|. Three members of the board of directors have resigned.

2. Bruse Company announced that shortly after the beginning of the next fiscal year it plans to sell 2 operating divisions and focus on its primary product line.

3. Several new convertible securities were issued during the past year, and diluted earnings per share decreased sharply from last year’s amount.
4. Sales in July through September were well below the pre- vious year’s levels.
5. The outside auditor resigned as a result of a disagreement with the company on several policy issues.
6. Depreciation expense for the most recent year was $280,000.
7. The board of directors voted to acquire Ohio Tile Corpo- ration through an exchange of common stock.
8. An application to issue Bruse common shares to existing shareholders of Ohio Tile is submitted to the SEC.
9. A change in accounting procedures was adopted in October and resulted in a cumulative adjustment of $45,000 to net income.

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Total sales Cost of sales Gross margin Other identifiable costs Segment earnings Percentage of sales to related companies Eastern South United Europe Asia America States $300,000 $600,000 $200,000 $800,000 (180,000) (420,000) (100,000) (600,000) $120,000 $180,000 $100,000 $200,000 (70,000) (100,000) (30,000) (50,000) $ 50,000 $ 80,000 $ 70,000 $150,000 10% 20% 25% 15%