Question
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 Metals Lumber Paper Finance Sales to outside parties $ 6,644 $ 2,334 $ 701 $ 412 0 Intersegment transfers 144 169 134 146 0 Interest income from outside parties 0 32 19 0 $ 40 Interest income from intersegment loans 0 0 0 0 197 Operating expenses 4,174 1,742 1,046 644 29 Interest expense 74 29 64 30 100 Tangible assets 1,481 3,176 504 751 169 Intangible assets 85 399 0 61 0 Intersegment loans (debt) 0 0 0 0 702 Ecru does not allocate its $1,480,000 in common expenses to the various segments. Perform testing procedures to determine Ecrus reportable operating segments. (Round your percentage answers to 2 decimal places. Enter your answers in thousands of dollars.) Revenue test: Profit or loss test: Asset test: ReferenceseBook & Resources ProblemDifficulty: Medium
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