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Following is financial information describing the six operating segments that make up Fairfield, Inc. (in thousands): Segments Red Blue Green Pink Black White Sales to
Following is financial information describing the six operating segments that make up Fairfield, Inc. (in thousands):
Segments | |||||||||||||||||||||||
Red | Blue | Green | Pink | Black | White | ||||||||||||||||||
Sales to outside parties | $ | 1,820 | $ | 821 | $ | 523 | $ | 318 | $ | 130 | $ | 108 | |||||||||||
Intersegment revenues | 25 | 100 | 118 | 0 | 25 | 311 | |||||||||||||||||
Salary expense | 623 | 388 | 411 | 321 | 326 | 71 | |||||||||||||||||
Rent expense | 148 | 175 | 90 | 101 | 51 | 40 | |||||||||||||||||
Interest expense | 74 | 68 | 91 | 58 | 23 | 14 | |||||||||||||||||
Income tax expense (savings) | 150 | 96 | 70 | (95 | ) | (73 | ) | 0 | |||||||||||||||
Consider the following questions independently. None of the six segments has a primarily financial nature.
a. What minimum revenue amount must any one segment generate to be of significant size to require disaggregated disclosure? (Enter your answer in dollars but not in thousands.) Answer is complete but not entirely correct. Minimum $ 4,299 revenues c. What volume of revenues must a single customer generate to necessitate disclosing the existence of a major customer? (Enter your answer in dollars but not in thousands.) Answer is complete but not entirely correct. Volume of revenues 430Step by Step Solution
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