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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 common expenses to the various segments.   Perform testing procedures to determine Ecru’s reportable operating segments.   Revenue test: Profit or loss test: Asset test:

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 common expenses to the various segments.   Perform testing procedures to determine Ecru’s reportable operating segments.   Revenue test: Profit or loss test: Asset test:

Managerial Accounting: The Cornerstone of Business Decision-Making
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter15: Financial Statement Analysis
Section: Chapter Questions
Problem 57P: Grammatico Company has just completed its third year of operations. The income statement is as...
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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 common expenses to the various segments.

 

Perform testing procedures to determine Ecru’s reportable operating segments.

 

  1. Revenue test:

  2. Profit or loss test:

  3. Asset test:

 

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