Multiplex Inc., a public company whose stock is traded on a national stock exchange, reported the following information on its consolidated financial statements for 20X5:

The management of Multiplex determined that it had the following operating segments during 20X5: (1) car rental, (2) aerospace, (3) communications, (4) health and fitness products, and (5) heavy equipment manufacturing. The company assembled the following information for these industry segments for 20X5 (dollar amounts stated in millions):

1. The corporate headquarters had general corporate expenses totaling \(\$ 33,000,000\) and identifiable assets of \(\$ 25,000\) (neither piece of information was used by the chief operating decision maker in defining operating segment performance).
2. The \(\$ 5,000,000\) of intersegment sales of the car rental segment consisted of car rentals to the aerospace \((\$ 2,000,000\) ) and communications ( \(\$ 3,000,000\) ) segments. The intersegment sales of \(\$ 25,000,000\) of the heavy equipment segment were made to the aerospace segment. The aerospace segment is using the equipment in its manufacturing operations. The heavy equipment segment realized a profit of \(\$ 8,000,000\) from this sale. At December \(31,20 \times 5, \$ 7,000,000\) of this profit was unrealized from a consolidated viewpoint.
3. At December 31,20X5, there were no intercompany receivables or payables related to the intersegment car rentals. However, the heavy equipment segment had a \(\$ 15,000,000\) receivable from the intersegment sale to the aerospace segment. The company's policy is to include intersegment receivables in a segment's assets for purposes of evaluating segment performance.

\section*{Required}

a. Prepare schedules for each of the three 10 percent tests: (1) the revenue test, (2) the profit or loss test, and (3) the assets test. Each schedule should indicate which of Multiplex's industry segments are reportable segments for 20X5.

b. Indicate whether or not Multiplex's reportable segments meet the 75 percent revenue test.

c. Prepare the information about the company's operations in different industry segments as required by FASB 131.

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From the consolidated income statement: Sales revenues $564,000,000 Rental revenues 34.000.000 Income before income taxes 65.000.000 Income taxes 20.000.000 From the consolidated balance sheet: Total assets $475,000,000