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Perry's Corporation is comprised of five operating segments. Information about each of these segments is as follows (in thousands): Linens $47 2 1 Kitchen $253
Perry's Corporation is comprised of five operating segments. Information about each of these segments is as follows (in thousands): Linens $47 2 1 Kitchen $253 13 Grocery $22 7 Furniture $61 Stationery $14 12 15 2 Sales to outsiders Intersegment transfers Interest revenue - outsiders Interest revenue - intersegment Operating expenses - outsiders Operating expenses - intersegment Interest expense Income taxes Tangible assets Intangible assets Intersegment loans 2 Required In order to receive credit for any of your answer you much provide all of the calculations showing how you arrived at your answer; no rounding of numbers (when applicable) is allowed; and partial credit will NOT be given for any incorrect answer. Based on the above information please answer the following: A. Which operating segments are reportable under the revenue test? B. What is the total amount of revenues in applying the revenue test? C. Which operating segments are reportable under the profit or loss test? D. In applying the profit or loss test, what is the minimum amount an operating segment must have in order to meet the profit or loss test for a reportable segment? E. Which operating segments are reportable under the asset test? F. In applying the asset test, what is the minimum amount an operating segment must have in order to meet the asset test for a reportable segment? G. Which operating segments are reportable? H. According to the test results for reportable segments, is there a sufficient number of reported segments or should any additional segments also be disclosed? Explain the reason for your conclusion
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