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Item 1 Item 1 10 points Ecru Company has identified five industry segments: plastics, metals, lumber, paper, and finance. It appropriately consolidated each of these
Item1
Item 1 10 points
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 | $ | 6,370 | $ | 2,169 | $ | 646 | $ | 357 | $ | 0 | |||||||||
Intersegment transfers | 113 | 136 | 101 | 113 | 0 | ||||||||||||||
Interest income from outside parties | 0 | 21 | 8 | 0 | 29 | ||||||||||||||
Interest income from intersegment loans | 0 | 0 | 0 | 0 | 164 | ||||||||||||||
Operating expenses | 3,954 | 1,632 | 936 | 589 | 18 | ||||||||||||||
Interest expense | 63 | 18 | 53 | 30 | 89 | ||||||||||||||
Tangible assets | 1,316 | 3,011 | 339 | 586 | 114 | ||||||||||||||
Intangible assets | 74 | 366 | 0 | 50 | 0 | ||||||||||||||
Intersegment loans (debt) | 0 | 0 | 0 | 0 | 669 | ||||||||||||||
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Ecru does not allocate its $1,260,000 in common expenses to the various segments.
Perform testing procedures to determine Ecrus reportable operating segments.
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Revenue test:
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Profit or loss test:
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Asset test:
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