1 Natarajan, Inc. had the following operating segments, with the indicated amounts of segment revenues and segment expenses: 2 External Intersegment Segment 3 Segment Revenues Sales Expenses 4 A $ 7,500,000 $ 600,000 $ 6,300,000 5 B 2,900,000 6 1,000,000 4,300,000 7 C 700,000 1,300,000 2,200,000 8 D 4,000,000 250,000 4,100,000 9 E 1,600,000 800,000 2,700,000 10 11 12 13 17. According to the revenue test (10% rule), which segment would not be considered separately reportable? 14 Your answer: 15 16 17 18 19 18. For purposes of the profit or loss test, segment C's operating profit or loss) is 20 Your answer: 21 22 19. When totaling the revenues to use as the basis for the 75% rule, what is the 75% hurdle that must be exceeded by the revenues of the reportable segments (Hint=benchmark sales x 0.75)? 22 Vauranwar