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 | $ | 6,769 | $ | 2,384 | $ | 726 | $ | 437 | 0 | ||||||
Intersegment transfers | 154 | 179 | 144 | 156 | 0 | ||||||||||
Interest income from outside parties | 0 | 37 | 24 | 0 | $ | 45 | |||||||||
Interest income from intersegment loans | 0 | 0 | 0 | 0 | 207 | ||||||||||
Operating expenses | 4,274 | 1,792 | 1,096 | 669 | 34 | ||||||||||
Interest expense | 79 | 34 | 69 | 25 | 105 | ||||||||||
Tangible assets | 1,531 | 3,226 | 554 | 801 | 194 | ||||||||||
Intangible assets | 90 | 409 | 0 | 66 | 0 | ||||||||||
Intersegment loans (debt) | 0 | 0 | 0 | 0 | 712 | ||||||||||
Ecru does not allocate its $1,430,000 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: Segment Revenues Percentages Report or Not Report Plastic ? ? ? |
Metal
Lumber
Paper
Finance
2) Profit or Loss test
Segment revenue expenses profit loss Report/Not Report
Lumber ? ? ? ? ?
Metal
Lumber
Paper
Finances
3) Asset Test
Segments Assets Percentages Report or not report
Plastic ? ? ?
Metal
Lumber
Paper
Finances
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