P13-19 Segment Disclosures in the Financial Statements LO 13-2

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	$	590,000,000
Rental revenues		41,000,000
Income before income taxes		70,000,000
Income taxes		21,000,000
From the consolidated balance sheet:
Total assets	$	528,000,000

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	Car Rental			Aerospace			Communications			Health/ Fitness			Heavy Equipment
Sales					$217			$50			$60			$260
Rentals		$44
Intersegment sales		7												30
Cost of goods sold					142									178
Selling expenses		17			52			19			24			47
Other traceable expenses		5			9			12			6			20
Allocation of common costs		3			8			3			3			8
Assets		30			117			80			90			210
Other information:
Depreciation expense (included above)		5			25			5			6			35
Capital expenditures		4			40						25			50

Additional Information
1.	The corporate headquarters had general corporate expenses totaling $34,000,000 and assets of $26,000,000 (the chief operating decision maker used neither piece of information in defining operating segment performance).
2.	The car rental segments $7,000,000 of intersegment sales consisted of rentals to the aerospace ($3,000,000) and communications ($4,000,000) segments. The intersegment sales of $30,000,000 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 $9,000,000 from this sale. At December 31, 20X5, $8,000,000 of this profit was unrealized from a consolidated viewpoint.
3.	At December 31, 20X5, no intercompany receivables or payables were related to the intersegment car rentals. However, the heavy equipment segment had a $17,000,000 receivable from the intersegment sale to the aerospace segment. The companys policy is to include intersegment receivables in a segments assets for purposes of evaluating segment performance.

Required:
a.	Prepare schedules for each of the three 10 percent tests: (1) the revenue test, (2) the profit-or-loss test, and (3) the assets test. Each schedule should indicate which of Multiplexs industry segments are reportable segments for 20X5. (Enter your answers in millions. Round your percentage answers to 1 decimal place.)

b.

Do Multiplexs reportable segments meet the 75 percent revenue test?

	Yes
	No

c.	Prepare the information about the companys operations in different industry segments as required by ASC 280. (Enter your answers in millions.)

PLEASE HELP ME SOLVE THIS!! PLEASE DO NOT POST SOMETHING THAT IS ALREADY AVAILABLE ONLINE OR SIMILAR. IF POSSIBLE ANSWER THIS SPECIFIC QUESTION. Thanks

MULTIPLEX INC chedule for 10% Revenue Test For the Year Ended December 31, 20X5 (in millions) Segment Revenue Percent of Combined Revenue Reportable Segment Segment Car Rental Aerospacee Communications Health/Fitness Heavy Equipment Total MULTIPLEX INC Schedule for the 10% Segment Profit or Loss Test For the Year Ended December 31, 20X5 (in millions) Segment Percent of Test Reportable Segment Segment Profit (loss) Amount Car Rental Aerospacee Communications Health/Fitness Heavy Equipment Total