Question
Countywide Cable Services, Inc. is organized with three segments: Metro, Suburban, and Outlying. Data for these segments for the year just ended follow. Metro Suburban
Countywide Cable Services, Inc. is organized with three segments: Metro, Suburban, and Outlying. Data for these segments for the year just ended follow.
| Metro | Suburban | Outlying | |||||||
| Service revenue | $ | 970,000 | $ | 770,000 | $ | 370,000 | |||
| Variable expenses | 154,000 | 104,000 | 54,000 | ||||||
| Controllable fixed expenses | 356,000 | 276,000 | 106,000 | ||||||
| Fixed expenses controllable by others | 184,000 | 154,000 | 44,000 | ||||||
In addition to the expenses listed above, the company has $55,000 of common fixed expenses. Income-tax expense for the year is $255,000.
Required:
-
Prepare a segmented income statement for Countywide Cable Services, Inc.
| EGMENTED INCOME STATEMENTS: COUNTYWIDE CABLE SERVICES, INC. | ||||
| Segments of Company | ||||
| Countywide Cable Services | Metro | Suburban | Outlying | |
| Service revenueselected answer correct | not attempted | not attempted | not attempted | not attempted |
| Variable expensesselected answer correct | not attempted | not attempted | not attempted | not attempted |
| Segment contribution margin | $0 | $0 | $0 | $0 |
| Less: Fixed expenses controllable by segment managerselected answer correct | not attempted | not attempted | not attempted | not attempted |
| Profit margin controllable by segment manager | $0 | $0 | $0 | $0 |
| Less: Fixed expenses, traceable to segment, but controllable by othersselected answer correct | not attempted | not attempted | not attempted | not attempted |
| Profit margin traceable to segment | $0 | $0 | $0 | $0 |
| Less: Common fixed expensesselected answer correct | not attempted | |||
| Income before taxesselected answer correct | $0 | |||
| Less: Income tax expenseselected answer correct | not attempted | |||
| Net income | ||||
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Auditing & Assurance Services A Systematic Approach
Authors: William F Messier Jr, Steven M Glover, Douglas F Prawitt
11th Edition
1260687635, 1259969444, 9781259969447, 978-1260687637
