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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 | $ | 1,817 | $ | 818 | $ | 520 | $ | 315 | $ | 127 | $ | 105 | |||||||||||
Intersegment revenues | 22 | 97 | 115 | 0 | 22 | 308 | |||||||||||||||||
Salary expense | 620 | 385 | 408 | 318 | 323 | 68 | |||||||||||||||||
Rent expense | 145 | 172 | 87 | 98 | 48 | 37 | |||||||||||||||||
Interest expense | 71 | 65 | 88 | 55 | 20 | 11 | |||||||||||||||||
Income tax expense (savings) | 147 | 93 | 67 | (92 | ) | (70 | ) | 0 | |||||||||||||||
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Consider the following questions independently. None of the six segments has a primarily financial nature.
Problem 8-36 Part a
a. What minimum revenue amount must any one segment generate to be of significant size to require disaggregated disclosure?
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