Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Brothers Co. identified five operating segments: (1) Blue, (2) Green, (3) Yellow, (4) Red, and (5) Purple. The company properly consolidated the segments when it
Brothers Co. identified five operating segments: (1) Blue, (2) Green, (3) Yellow, (4) Red, and (5) Purple. The company properly consolidated the segments when it prepared its annual financial statements. Information describing each segment is presented below (in thousands).
Blue | Green | Yellow | Red | Purple | |
Sales to outside parties | 8,626 | 2,926 | 868 | 474 | 0 |
Intersegment revenues transfers | 149 | 179 | 131 | 147 | 0 |
Interest income from outside parties | 0 | 26 | 8 | 0 | 254 |
Interest income from intersegment loans | 0 | 0 | 0 | 0 | 217 |
Operating expenses | 5,342 | 2,201 | 1,251 | 791 | 22 |
Interest expenses | 83 | 22 | 69 | 42 | 119 |
Tangible assets | 1,762 | 4,076 | 428 | 765 | 142 |
Intangible assets | 99 | 492 | 0 | 65 | 906 |
Prepare the profit or loss test and determine which of these segments was separately reportable.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started