Advanced Financial Accounting
12th Edition
ISBN: 9781259916977
Author: Christensen, Theodore E., COTTRELL, David M., Budd, Cassy
Publisher: Mcgraw-hill Education,
expand_more
expand_more
format_list_bulleted
Concept explainers
Videos
Textbook Question
Chapter 13, Problem 13.1E
Reportable Segments
Data for the seven operating segments of Amalgamated Products follow:
Included in the $105,000 revenue of the Bicycles segment are sales of $25,000 made to the Suporting Goods segment.
Required
- Which segments are separately reportable?
- Do the separately reportable segments include a sufficient portion of total revenue? Explain.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Tres Company has three lines of business, each of which was determined to be reportable segment. Sales aggregated P7,500,000 in the current year, of which Segment One contributed 40%. Traceable costs were P1,750,000 for Segment One out of a total of P5,000,000 for the entity as a whole. The entity allocates common costs of P1,500,000 based on the ratio of a segment's income before common costs to the total income before common costs. What amount should be reported as operating profit for Segment One?
The following information pertains to the Liberty Company and its divisions for the year ended December 31, 2014 :
Sales to unaffiliated customers P10,000,000Inter- segment sales of products similar to those sold to unaffiliated customers 2,000,000Liberty Company all its divisions are engaged solely in manufacturing operations.
Liberty has a reportable segment if the segment's revenue will total to what amount?
An entity and its divisions reported the following for the current year:
Sales to unaffiliated customers
40,000,000
Intersegment sales of product similar to those sold to unaffiliated customers
12,000,000
Interest earned on loans to other operating segments
1,000,000
The entity and all of its divisions are engaged solely in manufacturing operations.
To qualify as reportable segment, the segment revenue should at least be what amount?
A. 5,300,000
B. 4,100,000
C. 5,200,000
D. 4,000,000
Chapter 13 Solutions
Advanced Financial Accounting
Ch. 13 - Prob. 13.1QCh. 13 - Prob. 13.2QCh. 13 - What are the three 10 percent significance tests...Ch. 13 - Prob. 13.4QCh. 13 - A company has 10 industry segments, of which the...Ch. 13 - Prob. 13.6QCh. 13 - Prob. 13.7QCh. 13 - Prob. 13.8QCh. 13 - Prob. 13.9QCh. 13 - Prob. 13.10Q
Ch. 13 - Prob. 13.11QCh. 13 - Prob. 13.12QCh. 13 - Prob. 13.13QCh. 13 - Prob. 13.14QCh. 13 - Maness Company made a change in accounting for its...Ch. 13 - Prob. 13.1CCh. 13 - Prob. 13.2CCh. 13 - Prob. 13.3CCh. 13 - Prob. 13.7CCh. 13 - Prob. 13.8CCh. 13 - Prob. 13.9CCh. 13 - Reportable Segments Data for the seven operating...Ch. 13 - Prob. 13.2.1ECh. 13 - Prob. 13.2.2ECh. 13 - Prob. 13.2.3ECh. 13 - Prob. 13.2.4ECh. 13 - Prob. 13.2.5ECh. 13 - Prob. 13.2.6ECh. 13 - Prob. 13.2.7ECh. 13 - Prob. 13.2.8ECh. 13 - Prob. 13.2.9ECh. 13 - Prob. 13.2.10ECh. 13 - Prob. 13.2.11ECh. 13 - Prob. 13.3.1ECh. 13 - Prob. 13.3.2ECh. 13 - Multiple-Choice Questions on Interim Reporting...Ch. 13 - Prob. 13.3.4ECh. 13 - Prob. 13.3.5ECh. 13 - Prob. 13.3.6ECh. 13 - Prob. 13.3.7ECh. 13 - Prob. 13.3.8ECh. 13 - Prob. 13.3.9ECh. 13 - Prob. 13.3.10ECh. 13 - LIFO Liquidation During July, Laesch Company,...Ch. 13 - Inventory Write-Down and Recovery Cub Company, a...Ch. 13 - MutiniedChoice Questions on Income Taxes at...Ch. 13 - Prob. 13.6.2ECh. 13 - Prob. 13.6.3ECh. 13 - MutiniedChoice Questions on Income Taxes at...Ch. 13 - Prob. 13.6.5ECh. 13 - Prob. 13.6.6ECh. 13 - Prob. 13.7ECh. 13 - Prob. 13.8ECh. 13 - Prob. 13.9ECh. 13 - Prob. 13.10ECh. 13 - Prob. 13.11ECh. 13 - Prob. 13.12ECh. 13 - Prob. 13.13PCh. 13 - Prob. 13.14PCh. 13 - Interim Income Statement Chris Inc. has...Ch. 13 - Prob. 13.17PCh. 13 - Prob. 13.20PCh. 13 - Matching Terms Match the items in the left-hand...
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Bryant Inc. has five segments and is determining which segments need to be reported separately. One measure of determining reportable segments includes when the revenues of the segment exceed 10 percent of the Question 17 options: a) total revenues ($200,000) of all enterprise's operating segments. b) combined net income of all segments reporting profits (amounting to $95,900). c) total export and foreign sales (amounting to $75,000). d) total combined revenues (amounting to $150,000) for all segments reporting profits.arrow_forwardVincenzo Corporation is a manufacturer with four product lines. Below is some financial information about each of the four product lines. Required:Calculate, explain, and determine which of the segments are reportable based on the:a. Revenue testb. Operating profit (loss) testc. Identifiable assets testd. 75 percent combined revenue testarrow_forwardData for the three operating segments of Polyglot Company for the fiscal year ended June 30, 2006 were as follows (amounts in thousands): Alpha Beta Gamma TotalSales to outside customers $400 $500 $600 $1,500Intersegmental sale 50 40 30 120Traceable Expenses Intersegmental purchases 60 20 40 120Other 200 300 500 1,000Nontraceable expenses 150 Prepare a working paper to compute revenue and segment profit or loss for each segment. Nontracable expenses are allocated using the follow percentages: Alpha 27%; Beta 33%; Gamma 40%.arrow_forward
- 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. $200,000arrow_forwardRamco company operates in five identifiable segments, A,B,C,D and E. During the past years, sales to unaffiliated customers and intersegments sales for each segments were as follows: (Photo) Required:Applying the revenue test, determine which of the segments reportable segments are.arrow_forwardKing Company operates in 4 different industries, each of which is appropriately regarded as a reportablesegment. Total sales for 2019 for all segments combined were $1,000,000. Sales for Segment 2 were$400,000, and the traceable costs were $150,000. Total common costs for all segments combined were$500,000. King allocates common costs based on the ratio of a segment’s sales to total sales, anappropriate method of allocation. The segment profit to be reported for Segment 2 for 2019 is _________.A. $ 50,000B. $125,000C. $200,000D. $250,000arrow_forward
- 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: (see screen shot) Ecru does not allocate its $1,480,000 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:arrow_forwardThe following information pertains to Corsig Corp. and its divisions for the year ended December 31, 2017. Sales to unaffiliated customers $2,125,000 Intersegment sales of products similar to those sold to unaffiliated customers 1,250,000 Interest earned on loans to other operating segments 56,000 Corsig and all of its divisions are engaged solely in manufacturing operations. Corsig has a reportable segment if that segment's revenue exceeds $212,500. $337,500. $331,900. $343,100.arrow_forwardThe Officers of the Company reviewed the profitability of the company's four products and the potential effect of several proposals for varying the product mix. An excerpt from the year's income statement and other date follows: Total P Q R S Sales P62,600 P10,000 P18,000 P12,600 P22,000 Cost of Goods Sold 44,274 4,750 7,056 13,968 18,500 Gross Profit P18,326 P5,250 P10,944 P(1,368) P3,500 Operating Expense 12,012 1,990 2,976 2,826 4,220 Profit before income tax P6,314 P3,260 P7,968 P(4,194) P(720) Units Sold 1,000 1,200 1,800 2,000 Sales Price Per Unit P10.00 P15.00 P7.00 P11.00 Variable Cost of goods sold per unit P2.50 P3.00 P6.50 P6.00 Variable operating expense per unit P1.17 P1.25 P1.00 P1.20 The total fixed cost is not expected to fluctuate as a result of changes under consideration. Required:…arrow_forward
- In the income statement for the current year, the entity which is subject to the requirements of segment report, reported external sales of P60,000,000, internal sales of P5,000,000, expenses of P45,000,000. The combined total assets of all operating segments at year-end amounted to P56,000,000. What is the lowest amount of external revenue that should be disclosed by reportable segments?arrow_forwardEcru 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:Ecru does not allocate its $1,460,000 in common expenses to the various segments.Perform testing procedures to determine Ecru’s reportable operating segments.arrow_forwardThe following financial information was summarized from the accounting records of Train Corporation for the current year ended December 31: RailsDivision LocomotiveDivision CorporateTotal Cost of goods sold $45,900 $29,900 Direct operating expenses 26,300 21,000 Sales 90,700 66,700 Interest expense $3,000 General overhead 19,100 Income tax 4,100 The income from operations for the Rails Division is a.$64,400 b.$44,800 c.$90,700 d.$18,500arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
College Accounting, Chapters 1-27AccountingISBN:9781337794756Author:HEINTZ, James A.Publisher:Cengage Learning,
College Accounting, Chapters 1-27
Accounting
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:Cengage Learning,
The KEY to Understanding Financial Statements; Author: Accounting Stuff;https://www.youtube.com/watch?v=_F6a0ddbjtI;License: Standard Youtube License