Multiplex Inc., a public company whose stock is traded on a national stock exchange, reported the following information on its consolidated financial statements for 20X5: From the consolidated income statement: Sales revenues Rental revenues Income before income taxes Income taxes From the consolidated balance sheet: Total assets $591,000,000 49,000,000 34,000,000 22,000,000 $571,000,000 Car Rental Aerospace $226 $ 34 Multiplex management determined that it had the following operating segments during 20X5: (1) car rental, (2) aerospace, (3) communications, (4) health and fitness products, and (5) heavy equipment manufacturing. The company assembled the following information for these industry segments for 20X5 (dollar amounts stated in millions): Item Sales Rentals Communications $ 60 Health/ Fitness $ 50 Heavy Equipment $270 Intersegment sales 9 Cost of goods sold 139 35 179 Selling expenses 18 62 Other traceable expenses 6 10 Allocation of common costs 9 Assets 40 127 8.08 30 25 57 13 30 4 4 9 100 215 Other information: Depreciation expense (included above) Capital expenditures 35 50 7 35 3 45 60 Additional Information 1. The corporate headquarters had general corporate expenses totaling $35,000,000 and assets of $27,000,000 (the chief operating decision maker used neither piece of information in defining operating segment performance). 2. The car rental segment's $9,000,000 of intersegment sales consisted of rentals to the aerospace ($4,000,000) and communications ($5,000,000) segments. The intersegment sales of $35,000,000 of the heavy equipment segment were made to the aerospace segment to use in its manufacturing operations. The heavy equipment segment realized a profit of $10,000,000 from thie esla At Daramher 21 OVE CO 000 000 of thie profit war unraalivar from a canealidated uiannint < Prev 3 of 3 Next