Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed
image text in transcribed
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 $6,680 Paper $ 407 144 Sales to outside parties Intersement transfers Interest income from outside parties Interest income from intersegment loans Operating expenses Interest expense Tangible asseta Intangible asseta Intersement loans (debt) 0 0 4,154 73 1.486 84 0 Metals $2,324 167 31 0 1,732 28 3,166 Lumber $ 696 132 10 0 1.036 63 494 0 0 . 639 31 741 60 Finance $ 0 0 39 195 28 99 164 0 700 397 0 Ecru does not allocate its $1,490,000 in common expenses to the various segments. Perform testing procedures to determine Ecru's 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 Profit or Loss Test Asset Test Perform revenue test procedure to determine Ecru's reportable operating segments. (Round your percentage answers to 1 decimal place. Enter your answers in thousands of dollars.) Segment Revenues Reported or Not Percentage Reported Plastics % Metals % Lumber % Paper % Finance % % Total Profit or Loss Test>

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Audit And Accounting Guide Employee Benefit Plans

Authors: American Institute Of Certified Public Accountants

1st Edition

0870515756, 978-0870515750

More Books

Students also viewed these Accounting questions

Question

Does it have correct contact information?

Answered: 1 week ago