Merriweather Company, a publicly-held firm, is completing its 10-K report for fiscal 2020. It needs to make decisions on the appropriate disclosures required

for the following items. Indicate the disclosures and/or journal entries required for the items below.

a) Merriweather considers that it is involved in five separate lines of business. The following information is available, from which Merriweather must determine

which segments are reportable and what that disclosure should look like.

Line of businessTotal revenueOperating Profit or (loss)Identifiable assets

Children's wear 120,000,000 30,000,000 167,000,000

Women's wear 20,000,000 3,000,000 52,000,000

Men's wear 46,000,000 2,000,000 145,000,000

Outerwear 18,000,000 (1,050,000) 45,000,000

Foot wear 22,000,000 (9,600,000) 140,000,000

Total 226,000,000 24,350,000 549,000,000

b) One of Merriweather's major customers declared bankruptcy on February 3, 2021. At the end of December 2020, this company owed Merriweather $1,500,000,

of which just $200,000 was paid in January 2021.

c) On January 23, 2021, a strike was called at one of Merriweather's largest plants, which halted 30% of its production. The strike has not yet been settled.

d) On February 1, 2021, the board of directors adopted a resolution accepting the offer of an investment banker to guarantee the marketing of $1,200,000 of preferred stock.