Question
Bennett Inc. is a publicly held corporation whose diversified operations have been separated into five industry segments. Bennett is in the process of preparing its
Bennett Inc. is a publicly held corporation whose diversified operations have been separated into five industry segments. Bennett is in the process of preparing its annual financial statements for the year ended December 31, 20X5. The following information has been collected for the preparation of the segment reports required by FASB 131 (ASC 280).
BENNETT INC. Selected Data For the Year Ended December 31, 20X5 (in thousands) | |||||
Item | Power Tools | Fastening Systems | Household Products | Plumbing Products | Security Systems |
Sales to Unaffiliated Customers | $32,000 | $4,500 | $4,800 | $3,000 | $2,000 |
Intersegment Sales | $10,000 | $5,500 | $200 | $1,000 |
|
Total Revenue | $42,000 | $10,000 | $5,000 | $4,000 | $2,000 |
Cost of Goods Sold | $30,000 | $8,000 | $4,500 | $3,100 | $1,700 |
Operating Profit | $4,500 | $1,000 | ($600) | $700 | ($100) |
Net Income | $2,600 | $800 | ($750) | ($100) | ($200) |
Segment Assets | $50,000 | $23,000 | $17,000 | $6,000 | $4,000 |
Required
Determine which of the operating segments are reportable segments for Bennett. Your determination should include all required tests and the results of those tests for each of Bennetts five segments.
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