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Northern Chemicals, Inc., produces products in five separate lines of buisness: pharmaceuticals, paint and paint products, over-the-counter health products, vitamins, and beauty products. Each segment

Northern Chemicals, Inc., produces products in five separate lines of buisness: pharmaceuticals, paint and paint products,
over-the-counter health products, vitamins, and beauty products. Each segment is accounted for separately, with a
vice president in charge of each line of business. The results reported by each segment for the fiscal year 2021 were as follows:
Beauty Paint Pharmacy Vitamins Health
Sales revenue 3,300,000 9,000,000 11,600,000 3,000,000 6,600,000
Cost of goods sold 1,560,000 5,900,000 5,000,000 1,480,000 3,600,000
Operating expenses 1,440,000 4,700,000 4,700,000 1,680,000 2,160,000
Total expenses 3,000,000 10,600,000 9,700,000 3,160,000 5,760,000
Operating profit (loss) 300,000 (1,600,000) 1,900,000 (160,000) 840,000
Identifiable assets 3,080,000 9,800,000 11,400,000 3,440,000 7,800,000
The sales of Health included intersegment sales of $80,000, and Pharmacy sales included intersegment sales of $400,000.
Required:
1. Determine which of the segments are reportable based on the:
a. Revenue test.
b. Operating profit (loss) test.
c. Identifiable assets test.
2. Prepare the necessary disclosures required by GAAP.

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