The following is financial information describing the six operating segments that make up Chucktown Sauce Company (in thousands): Segments Red Blue Green Pink Black White Sales to outside parties $ 1,817 $ 818 $ 520 $ 315 $ 127 $ 105 Intersegment revenues 22 97 115 0 22 308 Salary expense 620 385 408 318 323 68 Rent expense 145 172 87 98 48 37 Interest expense 71 65 88 55 20 11 Income tax expense (savings) 147 93 67 (92) (70) 0 Consider the following questions independently. None of the six segments have a primarily financial nature.
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- Ecru Company has identified five industry segments: plastics, metals, lumber, paper, and finance. It appropriately consolidated each of these segments in producing its annual financial statements. Information describing each segment (in thousands) follows: Plastics Metals Lumber Paper Finance Sales to outside parties $ 6,325 $ 2,144 $ 636 $ 347 $ 0 Intersegment transfers 108 131 96 108 0 Interest income from outside parties 0 19 6 0 27 Interest income from intersegment loans 0 0 0 0 159 Operating expenses 3,914 1,612 916 579 16 Interest expense 61 16 51 31 87 Tangible assets 1,291 2,986 314 561 104 Intangible assets 72 361 0 48 0 Intersegment loans (debt) 0 0 0 0 664 Ecru does not allocate its $1,250,000 in…Mason Company has prepared consolidated financial statements for the current year and is now gathering information in connection with the following five operating segments it has identified. CompanyTotal Books Computers Maps Travel Finance Sales to outside parties $ 1,547 $ 121 $ 696 $ 416 $ 314 $ 0 Intersegment sales 421 24 240 39 118 0 Interest income—external 97 60 0 0 0 37 Interest income—intersegment loans 147 0 0 0 0 147 Assets 3,398 206 1,378 248 326 1,240 Operating expenses 1,460 115 818 304 190 33 Expenses—intersegment sales 198 70 51 31 46 0 Interest expense—external 107 0 0 0 0 107 Interest expense—intersegment loans 147 21 71 38 17 0 Income tax…Livro Company has three operating segments with the following information: Books Calendars Bags Sales to outsiders $12000 $9000 $8000 Inter segment transfers 1000 500 1500 In addition, corporate headquarters generates revenues of $2,000.What is the minimum amount of revenue that each of these segments must generate to be considered separately reportable? Choose the correct.a. $2,900b. $3,200c. $3,300d. $3,400
- Sunland Corporation is a diversified company that operates in five different industries: A, B, C, D, and E. The following information relating to each segment is available for 2021. A B C D E Sales revenue $39,900 $75,300 $573,800 $35,400 $55,100 Cost of goods sold 19,000 49,500 265,900 19,300 30,200 Operating expenses 10,100 40,500 233,700 11,900 18,300 Total expenses 29,100 90,000 499,600 31,200 48,500 Operating profit (loss) $10,800 $(14,700) $74,200 $4,200 $6,600 Identifiable assets $35,200 $79,900 $493,400 $66,300 $49,900 Sales of segments B and C included intersegment sales of $20,300 and $98,400, respectively. (a) Determine which of the segments are reportable based on the: Reportable Segment (1) Revenue test. (2) Operating profit (loss) test.…The following information pertains to Redping Corporation for the year ended December 31, 2020.Sales to unaffiliated customers $2,000,000Inter-segment sales of products similar tothose sold to unaffiliated customers 600,000All of Redping’s segments are engaged solely in manufacturing operations. Redping has a reportablesegment if that segment’s revenue exceeds ____________________.A. $264,000B. $260,000C. $204,000D. $200,000Bonita Corporation is a diversified company that operates in five different industries: A, B, C, D, and E. The following information relating to each segment is available for 2021. A B C D E Sales revenue $39,300 $74,500 $582,400 $35,000 $55,100 Cost of goods sold 19,300 50,600 267,500 18,800 29,900 Operating expenses 9,000 40,800 232,100 12,200 18,200 Total expenses 28,300 91,400 499,600 31,000 48,100 Operating profit (loss) $11,000 $(16,900) $82,800 $4,000 $7,000 Identifiable assets $35,700 $79,400 $502,100 $65,600 $49,100 Sales of segments B and C included intersegment sales of $20,200 and $99,600, respectively. Prepare the necessary disclosures required by GAAP. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) A B C Other Totals External Revenues $ $ $…
- Pina Corporation is a diversified company that operates in five different industries: A, B, C, D, and E. The following information relating to each segment is available for 2021. A B C D E Sales revenue $39,500 $74,600 $570,500 $35,300 $55,000 Cost of goods sold 19,100 49,500 264,900 19,100 30,200 Operating expenses 10,200 40,600 235,700 12,100 17,800 Total expenses 29,300 90,100 500,600 31,200 48,000 Operating profit (loss) $10,200 $(15,500) $69,900 $4,100 $7,000 Identifiable assets $34,500 $81,600 $505,400 $65,400 $49,400 Sales of segments B and C included intersegment sales of $20,400 and $99,000, respectively. Prepare the necessary disclosures required by GAAP. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) A B C Other Totals External Revenues $ $ $ $ $…Martinez Corporation has seven industry segments with total revenues as follows. Penley $620 Cheng $250 Konami 640 Takuhi 190 KSC 260 Molina 700 Red Moon 300 Based only on the revenues test, which industry segments are reportable?Vehicle Corporation is organized into four operating segments. The internal reporting system generated the following segment information: Revenue from outsiders Inter segment transfers Operating Expenses Auto $4000000 100000 $3600000 Trucks 3500000 200000 4000000 SUVs 2600000 -0- 2000000 Motorcycle 900000 50000 1020000 The company incurred additional operating expenses (of a general nature) of $1,200,000.Perform the profit or loss test to determine which of these segments is separately reportable
- Oreo reported the following for the period:Sales P1,000,000Cost of Sales P300,000Operating expenses P100,000Determine the OSD assuming that Oreo is a corporationMonty Corporation is a diversified company that operates in five different industries: A, B, C, D, and E. The following information relating to each segment is available for 2021. A B C D E Sales revenue $39,600 $76,200 $575,500 $34,400 $54,400 Cost of goods sold 19,100 49,600 267,500 19,300 30,300 Operating expenses 10,200 39,400 231,500 11,900 18,300 Total expenses 29,300 89,000 499,000 31,200 48,600 Operating profit (loss) $10,300 $(12,800) $76,500 $3,200 $5,800 Identifiable assets $35,400 $79,400 $509,700 $64,300 $50,300 Sales of segments B and C included intersegment sales of $20,200 and $101,700, respectively. Determine which of the segments are reportable based on the: Reportable Segment (1) Revenue test. (2) Operating profit (loss) test. (3) Identifiable assets test.As disclosed in the excerpt from notes to the consolidated fi nancial statements shown below (emphasis added), Apple Inc. (NasdaqGS: AAPL) uses diff erent revenue recognition policies depending on the type of revenue producing activity, including product sales, service and support contracts, and products obtained from other companies. Note that these are only the fi rst three paragraphs of Apple’s disclosure on revenue recognition; the entire revenue recognition portion has nine paragraphs. Revenue Recognition Net sales consist primarily of revenue from the sale of hardware, software, digital content and applications, peripherals, and service and support contracts. Th e Company recognizes revenue when persuasive evidence of an arrangement exists, delivery has occurred, the sales price is fi xed or determinable, and collection is probable. Product is considered delivered to the customer once it has been shipped and title and risk of loss have been transferred. For most of the Company’s…