(Segment Reporting) You are compiling the consolidated financial statements for Vender Corporation International. The corporation’s accountant, Vincent Price, has provided you with the following segment information.

instructions Determine which of the above segments must be reported separately and which can be combined under the category “Other.” Then, write a one-page memo to the company’s accountant, Vincent Price, explaining the following.

(a) What segments must be reported separately and what segments can be combined.

(b) What criteria you used to determine reportable segments.

(c) What major items for each must be disclosed.

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Note 7: Major Segments of Business VCI conducts funeral service and cemetery operations in the United States and Canada. Substantially all revenues of VCI's major segments of business are from unaffiliated customers. Segment information for fiscal 2007, 2006, and 2005 follows. Funeral Floral Cemetery (thousands) Corporate Dried Whey Limousine Consolidated Revenues 2007 $302,000 $10,000 $ 83,000 $7,000 $14,000 $416,000 2006 245,000 6,000 61,000 4,000 8,000 324,000 2005 208,000 3,000 42,000 1,000 6,000 260,000 Operating Income 2007 79,000 1,500 18,000 (36,000) 500 2,000 65,000 2006 64,000 200 12,000 (28,000) 200 400 48,800 2005 54,000 150 6,000 (21,000) 100 350 39,600 Capital Expenditures 2007 26,000 1,000 9,000 400 300 1,000 37,700 2006 28,000 2,000 60,000 1,500 100 700 92,300 2005 14,000 25 8,000 600 25 50 22,700 Depreciation and Amortization 2007 13,000 100 2,400 1,400 100 200 17,200 2006 10,000 50 1,400 700 50 100 12,300 2005 8,000 25 1,000 600 25 50 9,700 Identifiable Assets 2007 334,000 1,500 162,000 114,000 500 8,000 620,000 2006 322,000 1,000 2005 223,000 500 144,000 78,000 52,000 34,000 1,000 6,000 526,000 500 3,500 339,500 "Includes $4,520,000, $111,480,000, and $1,294,000 for the years ended April 30, 2007, 2006, and 2005, respectively, for purchases of businesses.