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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
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 $ 6,895 165 @ Metals $ 2,434 189 42 Lumber $ 751 154 29 Paper $ 462 166 Finance $ 0 Sales to outside parties Intersegment transfers Interest income from outside parties Interest income from intersegment loans Operating expenses Interest expense Tangible assets Intangible assets Intersegment loans (debt) 50 217 39 110 4,374 84 1,581 95 1,842 39 3,276 419 1,146 74 604 694 20 851 71 219 9 722 Ecru does not allocate its $1,380,000 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
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