Basia Company Consolidated Balance Sheet Email To: Preston Somner, Manager From: Angie Stone, Controller Date: July 2, Year 5 RE: Reporting Segments Preston, As you were told during your new employee orientation, Basia Company is a publicly traded company. What you may not know is that we must report segment information when our financial statements are released. We currently have six operating segments: Milk, Ice Cream, Chocolate, Cars, Computers, and Printers. We need your help in determining which of our segments should be reported this quarter. Our last accountant preferred to eat ice cream instead of doing his job, and that's why you're here. Unfortunately for you, many of our previous accountant's files were either destroyed when he left or areindistinguishable from one another due to thelted chocolate getting all over them. Before you can determine the quantitative thresholds for each of the three tests, you need to look through the files that are still legible and put together complete consolidated financial statements as of June 30, Year 5. Teresa, Sr. Accountant, will forward to you what work she has already prepared. Good Luck! Sincerely, Angle To: Preston Somner, Manager From: Barbara Perez, Regional Manager Date: July 3 , Year 5 RE: Quarter 2 profit and loss for food segments Preston, Angie asked me to forward you the Quarter 2 Profit and Loss for our food segments. Basla Company Profit and Loss For Quarter Ended June 30, Year 5 The financial results for the Cars Segment for Quarter 2, Year 5 are below. Let me know if you need additional information. Income Statement Basia Company Consolidated Income Statement "by Segment" For Quarter Ended June 30, Year 5 Milk Ice Cream Chocolate Cars Computers Printers Totals Sales Extemal customer revenue Intersegment revenues Total sales Cost of goods sold Gross profit Selling, general and admin. expenses Other (income) expense Income from operations Interest income Interest expense Income before tax Income tax expense Net income \begin{tabular}{rrrr} $8,000 & $3,000 & $11,000 \\ \hline 0 & 1,000 & 1,000 \\ \hline 8,000 & 4,000 & 12,000 \\ & 4,000 & 1,400 & 5,400 \\ \hline 4,000 & 2,600 & 6,600 \\ & 2,000 & 500 & 2,500 \\ & 500 & 500 & 1,000 \\ \hline 1,500 & 1,600 & 3,100 \\ & 0 & 0 & 0 \\ & 200 & 500 & 700 \\ \hline 1,300 & 1,100 & 2,400 \\ & 1,700 & 500 & 2,200 \\ \hline($400) & $600 & $200 \\ \hline \end{tabular} Enter in the designated cells below the quantitative thresholds for the tests to identify which operating segments are reportable. Round all amounts to the nearest dollar. Select from the option list provided whether the operating segments are reportable. Each choice may be used once, more than once, or not at all. Basia Company Consolidated Balance Sheet Email To: Preston Somner, Manager From: Angie Stone, Controller Date: July 2, Year 5 RE: Reporting Segments Preston, As you were told during your new employee orientation, Basia Company is a publicly traded company. What you may not know is that we must report segment information when our financial statements are released. We currently have six operating segments: Milk, Ice Cream, Chocolate, Cars, Computers, and Printers. We need your help in determining which of our segments should be reported this quarter. Our last accountant preferred to eat ice cream instead of doing his job, and that's why you're here. Unfortunately for you, many of our previous accountant's files were either destroyed when he left or areindistinguishable from one another due to thelted chocolate getting all over them. Before you can determine the quantitative thresholds for each of the three tests, you need to look through the files that are still legible and put together complete consolidated financial statements as of June 30, Year 5. Teresa, Sr. Accountant, will forward to you what work she has already prepared. Good Luck! Sincerely, Angle To: Preston Somner, Manager From: Barbara Perez, Regional Manager Date: July 3 , Year 5 RE: Quarter 2 profit and loss for food segments Preston, Angie asked me to forward you the Quarter 2 Profit and Loss for our food segments. Basla Company Profit and Loss For Quarter Ended June 30, Year 5 The financial results for the Cars Segment for Quarter 2, Year 5 are below. Let me know if you need additional information. Income Statement Basia Company Consolidated Income Statement "by Segment" For Quarter Ended June 30, Year 5 Milk Ice Cream Chocolate Cars Computers Printers Totals Sales Extemal customer revenue Intersegment revenues Total sales Cost of goods sold Gross profit Selling, general and admin. expenses Other (income) expense Income from operations Interest income Interest expense Income before tax Income tax expense Net income \begin{tabular}{rrrr} $8,000 & $3,000 & $11,000 \\ \hline 0 & 1,000 & 1,000 \\ \hline 8,000 & 4,000 & 12,000 \\ & 4,000 & 1,400 & 5,400 \\ \hline 4,000 & 2,600 & 6,600 \\ & 2,000 & 500 & 2,500 \\ & 500 & 500 & 1,000 \\ \hline 1,500 & 1,600 & 3,100 \\ & 0 & 0 & 0 \\ & 200 & 500 & 700 \\ \hline 1,300 & 1,100 & 2,400 \\ & 1,700 & 500 & 2,200 \\ \hline($400) & $600 & $200 \\ \hline \end{tabular} Enter in the designated cells below the quantitative thresholds for the tests to identify which operating segments are reportable. Round all amounts to the nearest dollar. Select from the option list provided whether the operating segments are reportable. Each choice may be used once, more than once, or not at all
