Segment Reporting Recycle Corporation has provided you with the following information about its operations for the past year:

1. The paper recycling division of Recycle Corporation reported operating revenues of $170,000 and operating costs of $348,000 during the past year. The operating loss was experienced because fewer people than expected were willing to separate their newspapers from other garbage so it could be picked up by Recycle’s trucks.

2. During the past year, the plastics recycling division developed a new process for grinding plastic and using it to produce large tote bags used by other companies in shipping products to customers. The plastics division reported revenue of $630,000 and operating expenses of $410,000 for the year.

3. The glass recycling division was just started during the past year and had unexpectedly high operating costs because broken glass was puncturing truck tires. The glass recycling division had revenues of $62,000 and expenses of $81,000 for the year.
4. The City of Overconsumption in which Recycle Corporation operates has signed an agreement with the company to compensate the company for any losses on recycling newspapers if, at the end of 3 years, it is still operating at a loss in that part of its operations.

a. What amount will Recycle Corporation report as total revenues, total expenses, and operating income for the year?

b. Since Recycle Corporation is only involved in the business of recycling, should it prepare segment information?
Explain.

c. In what ways might the disclosure of segment information for Recycle Corporation assist an investor in evaluating the company?

d. In what way should the existence of the contract with the city for potential reimbursement on losses incurred in recycling newspapers affect an investor’s decision on whether to invest in Recycle Corporation?