ADVANCED ACCOUNTING CONNECT ACCESS >I<
1st Edition
ISBN: 9781266418150
Author: Hoyle
Publisher: MCG CUSTOM
expand_more
expand_more
format_list_bulleted
Question
Chapter 8, Problem 34P
To determine
Perform profit or loss test to determine the separately reportable segments from these segments.
Expert Solution & Answer
Trending nowThis is a popular solution!
Students have asked these similar questions
Vehicle Corporation is organized into four operating segments. The internal reporting system generated the following segment information: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.
Vincenzo 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 test
Ramco 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.
Chapter 8 Solutions
ADVANCED ACCOUNTING CONNECT ACCESS >I<
Ch. 8 - Prob. 1QCh. 8 - Prob. 2QCh. 8 - Prob. 3QCh. 8 - The management approach requires a firm to define...Ch. 8 - What is an operating segment?Ch. 8 - Prob. 6QCh. 8 - Prob. 7QCh. 8 - Prob. 8QCh. 8 - Prob. 9QCh. 8 - Prob. 10Q
Ch. 8 - Prob. 11QCh. 8 - To satisfy geographic area disclosure...Ch. 8 - Prob. 13QCh. 8 - Prob. 14QCh. 8 - Prob. 15QCh. 8 - Prob. 16QCh. 8 - Prob. 17QCh. 8 - How does a company determine the amount of income...Ch. 8 - Prob. 19QCh. 8 - Prob. 20QCh. 8 - What type of segment information must companies...Ch. 8 - How would an annual bonus paid at year-end be...Ch. 8 - Which of the following does U.S. GAAP not consider...Ch. 8 - Prob. 2PCh. 8 - Prob. 3PCh. 8 - Prob. 4PCh. 8 - Prob. 5PCh. 8 - Which of the following is not necessarily true for...Ch. 8 - Prob. 7PCh. 8 - Prob. 8PCh. 8 - Prob. 9PCh. 8 - Which of the following items is required to be...Ch. 8 - Prob. 11PCh. 8 - Prob. 12PCh. 8 - Which of the following information items with...Ch. 8 - Prob. 14PCh. 8 - In considering interim financial reporting, how...Ch. 8 - How should material seasonal variations in revenue...Ch. 8 - Prob. 17PCh. 8 - Prob. 18PCh. 8 - Prob. 19PCh. 8 - Niceville Company pays property taxes of 100,000...Ch. 8 - Prob. 21PCh. 8 - Prob. 22PCh. 8 - Prob. 23PCh. 8 - Prob. 24PCh. 8 - Prob. 25PCh. 8 - Prob. 26PCh. 8 - Prob. 27PCh. 8 - Prob. 28PCh. 8 - Prob. 29PCh. 8 - Prob. 30PCh. 8 - Prob. 31PCh. 8 - Prob. 32PCh. 8 - Prob. 33PCh. 8 - Prob. 34PCh. 8 - Prob. 35PCh. 8 - Prob. 36PCh. 8 - Prob. 37PCh. 8 - Prob. 38PCh. 8 - Noventis Corporation prepared the following...Ch. 8 - Prob. 40PCh. 8 - Prob. 41PCh. 8 - Prob. 5DYSCh. 8 - ACCOUNTING STANDARDS CASE 1SEGMENT REPORTING...Ch. 8 - ACCOUNTING STANDARDS CASE 2INTERIM REPORTING...Ch. 8 - Prob. 8DYSCh. 8 - Prob. 9DYS
Knowledge Booster
Similar questions
- 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_forwardPina Company is involved in four separate industries. The following information is available for each of the four industries. Operating Segment W a. X Y Z Total Revenue Revenue test. $57,246 9,860 24,675 6,919 $98,700 Operating Profit (Loss) $16,970 2,570 (3,260) Determine which of the operating segments are reportable based on the: W&X Reportable Segments 1,220 $17,500 Identifiable Assets $165,764 82,882 20,006 17,148 $285,800arrow_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_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_forwardA public owned entity assesses performance and makes operating decisions using the reportable segments total revenue of P7,700,000 and total profit and loss of P500,000. The total profit and loss including inter-segment profit of P50,000. In addition, the entity has P10,000 of common costs for the reportable segments that are not allocated in reports reviewed by the chief operating decision maker. For purposes of segment reporting, what amount should be reported as segment profit of the reportable segments? a. 460,000 b. 450,000 c. 510,000 d. 500,000arrow_forwardA public owned entity assesses performance and makes operating decisions using the reportable segments total revenue of P7,700,000 and total profit and loss of P500,000. The total profit and loss including inter-segment profit of P50,000. In addition, the entity has P10,000 of common costs for the reportable segments that are not allocated in reports reviewed by the chief operating decision maker. For purposes of segment reporting, What amount should be reported as segment profit of the reportable segments?arrow_forward
- To manage its operations, Leaf Company reports to top management on five different segments which are consolidated appropriately for the annual financial statements. Information about each segment included in the current year's consolidated statements appears in the table below (in 000's): Sales to outside parties Intersegment revenues Outside parties interest income Intersegment interest income Operating expenses Interest expense Tangible assets Intangib assets a. the revenue test, Tools $8,220 140 -0- -0- 5,090 80 1,620 90 Leaf Company has $305,000 of corporate expenses that it does not allocate to the segments. Carry out: c. the asset test b. the profit and loss test, and Batteries Adhesives Plastics $2,790 170 30 -0- 2,100 20 3,880 470 $830 130 10 -0- 1,390 170 890 -0- $450 140 -0- -0- 750 40 730 60 Finance to determine which segments are separately reportable. Clearly show the results of each test and your decision on each test. $-0- -0- 250 210 20 110 140 870arrow_forwardAn analysis of the transactions of Rutherford Company for the year ended December 31, yieldsthe following information: sales revenue, $65,000; insurance expense, $4,300; interest income,$3,900; cost of goods sold, $28,800; and loss on disposal of property, plant, and equipment,$1,200.Required:Prepare a single-step income statement.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: Sales to outside parties Intersegment transfers Interest income from outside parties Interest income from intersegment loans Operating expenses Interest expense Tangible assets Intangible assets Intersegment loans (debt) Plastics $6,855 163 a. Revenue test: b. Profit or loss test: c. Asset test: 0 0 4,334 82 1,577 93 0 Metals $2,414 185 40 0 1,822 37 3,256 415 0 Lumber $ 741 150 27 0 1, 126 72 584 0 0 Ecru does not allocate its $1,400,000 in common expenses to the various segments. Perform testing procedures to determine Ecru's reportable operating segments. Paper Finance $ 452 162 0 0 684 22 831 69 0 0 48 213 37 108 209 0 718arrow_forward
- 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 reportablearrow_forwardFranklin Corporation operates three investment centers. The following financial statements apply to the investment center named Bowman Division. BOWMAN DIVISION Income Statement For the Year Ended December 31, Year 2 $106,280 59,575 46,705 Sales revenue Cost of goods sold Gross margin Operating expenses Selling expenses Depreciation expense (2,650) (4,015) 40,040 Operating income Nonoperating item ( 4,900) $ 35,140 Loss on sale of land Net income BOWMAN DIVISION Balance Sheet As of December 31, Year 2 Assets Cash $ 12,592 Accounts receivable Merchandise inventory Equipment less accumulated depreciation Nonoperating assets 40,456 37,100 90,358 9,700 Total assets $190,206 Liabilities $ 9,567 Accounts payable Notes payable Stockholders' equity 64,000 78,000 38,639 Common stock Retained earnings Total liabilities and stockholder's equity $190,206arrow_forwardTATUM Company, a publicly owned corporation, assess performance and makes operating decisions using the following information for its reportable segments: Total revenues P700,000 Total profit P50,000 Included in the total profit are intersegment profits of P5,000. In addition, TATUM has P1,000 of common costs for its reportable segments that are not allocated in reports used internally. For purposes of segment reporting, TATUM should report segment profit of a. P44,000 b. P51,000 c. P50,000 d. P70,000arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Financial Reporting, Financial Statement Analysis...FinanceISBN:9781285190907Author:James M. Wahlen, Stephen P. Baginski, Mark BradshawPublisher:Cengage Learning
Financial Reporting, Financial Statement Analysis...
Finance
ISBN:9781285190907
Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Publisher:Cengage Learning