Question
2. Ecru Company has identified five industry segments: plastics, metals, lumber, paper, and finance. It appropriately consolidated each of these segments in producing its annual
2. Ecru Company has identified five industry segments: plastics, metals, lumber, paper, and finance.
It appropriately consolidated each of these segments in producing its annual financial statements. Information describing each segment (in thousands) follows:
Plastics | Metals | Lumber | Paper | Finance | |||||||||||||||
Sales to outside parties | $ | 6,620 | $ | 2,294 | $ | 696 | $ | 407 | $ | 0 | |||||||||
Intersegment transfers | 140 | 161 | 126 | 138 | 0 | ||||||||||||||
Interest income from outside parties | 0 | 31 | 18 | 0 | 39 | ||||||||||||||
Interest income from intersegment loans | 0 | 0 | 0 | 0 | 189 | ||||||||||||||
Operating expenses | 4,154 | 1,732 | 1,036 | 639 | 28 | ||||||||||||||
Interest expense | 73 | 28 | 63 | 25 | 99 | ||||||||||||||
Tangible assets | 1,427 | 3,136 | 464 | 711 | 164 | ||||||||||||||
Intangible assets | 84 | 391 | 0 | 60 | 0 | ||||||||||||||
Intersegment loans (debt) | 0 | 0 | 0 | 0 | 694 | ||||||||||||||
Ecru does not allocate its $1,310,000 in common expenses to the various segments.
Perform testing procedures to determine Ecrus reportable operating segments.
a. Revenue test:
b. Profit or loss test:
c. Asset test:
Complete this question by entering your answers in the tabs below.
Revenue Test
Perform revenue test procedure to determine Ecrus reportable operating segments. (Round your percentage answers to 1 decimal place. Enter your answers in thousands of dollars.)
Segment | Revenues | Percentage | Reported or Not Reported |
Plastics | ? | ?% | ? |
Metals | ? | ?% | ? |
Lumber | ? | ?% | ? |
Paper | ? | ?% | ? |
Finance | ? | ?% | ? |
Total | ? | ?% | ? |
Profit or Loss Test
Perform profit or loss test procedure to determine Ecrus reportable operating segments. (Enter your answers in thousands of dollars.)
Segment | Revenues | Expenses | Profit | Loss | Reported or Not Reported |
Plastics | ? | ? | ? | ? | ? |
Metals | ? | ? | ? | ? | ? |
Lumber | ? | ? | ? | ? | ? |
Paper | ? | ? | ? | ? | ? |
Finance | ? | ? | ? | ? | ? |
Total |
Asset Test
Perform asset test procedure to determine Ecrus reportable operating segments. (Round your percentage answers to 1 decimal place. Enter your answers in thousands of dollars.)
Segment | Assets | Percentage | Reported or Not Reported |
Plastics | ? | ?% | ? |
Metals | ? | ?% | ? |
Lumber | ? | ?% | ? |
Paper | ? | ?% | ? |
Finance | ? | ?% | ? |
Total |
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