1) SHOW ALL YOUR WORK

2) PRESENTATION OF YOUR WORK

Question 4 SEGMENT REPORTING.

Blanton Corporation is comprised of five operating segments. Information about each of these segments is

as follows (in thousands):

Linens Kitchen Grocery Furniture Stationery

Sales to outsiders $47 $253 $22 $61 $14

Intersegment transfers 2 13 7 15 12

Interest revenue outsiders 1 - 2 4 -

Interest revenue intersegment - 3 - - 1

Operating expenses outsiders 58 207 20 51 13

Operating expenses intersegment 1 10 3 8 11

Interest expense - 6 - 1 -

Income taxes (2) 5 2 3 12

Tangible assets 9 58 9 6 4

Intangible assets - - 2 4 -

Intersegment loans receivable - 30 - - 4

Required:

a. Which operating segments are reportable under the revenue test?

b. Which operating segments are reportable under the profit or loss test?