Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Oroblanco Company has prepared consolidated financial statements for the current year and is now gathering information in connection with the following five operating segments it
Oroblanco Company has prepared consolidated financial statements for the current year and is now gathering information in connection with the following five operating segments it has identified. (Figures are in thousands.)
Required:
a1. Determine the reportable segments by performing revenue test.
a2. Determine the reportable segments by performing profit or loss test.
a3. Determine the reportable segments by performing asset test.
a1:
a2:
a3:
Determine the reportable segments by performing profit or loss test. Note: Enter your answers in thousands of dollars. Determine the reportable segments by performing asset test. Note: Round your percentage answers to 1 decimal place. Enter \begin{tabular}{|c|c|c|c|c|c|c|} \hline Accounts & Company Total & Books & Computers & Maps & Travel & Finance \\ \hline Sales to outside parties & $1,735 & $189 & $756 & $446 & $344 & $0 \\ \hline Intersegment sales & 551 & 44 & 280 & 59 & 168 & \\ \hline Interest income-external & 135 & 78 & & 0 & 0 & 57 \\ \hline Interest income-intersegment loans & 167 & & & 0 & 0 & 167 \\ \hline Assets & 3,728 & 256 & 1,481 & 298 & 353 & 1,340 \\ \hline Operating expenses & 1,580 & 135 & 868 & 314 & 210 & 53 \\ \hline Expenses-intersegment sales & 255 & 90 & 71 & 28 & 66 & \\ \hline Interest expense-external & 127 & & & 0 & 0 & 127 \\ \hline Income tax expense (savings) & 141 & 62 & (21) & 77 & 81 & (58) \\ \hline General corporate expenses & 105 & - & - & - & - & - \\ \hline Unallocated operating costs & 130 & - & - & - & - & - \\ \hline \end{tabular} Determine the reportable segments by performing revenue test. Note: Round your percentage answers to 1 decimal place. Enter your answers in thousands of dollarsStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started