Problem 12-6. All data available is giving as "You are presenting segmental information regarding your company to the finance committee of the board of directors and have been asked the following questions.

Provide responses to requirements 1-7.

S 455 n ad prelax amounts as follows. The first quarter of 2015 reported and no tax benefit was recognized. At the end of the first quarter o f Forested pretax income of $100,000 for the balance of the year. At the end of the durer of 2015, management forecasted pretax income of $78,000 for the balance of the year 7. Ignoring any corrections suggested by the above data, prior to 2015 the company reported a pretax loss of $50,000 in 2013 and a $7,500 tax benefic assuming "more likely than not that there would be adequate income in 2014. The company reported pretax income of $20,000 in 2014 and no related tax expense since the loss in 2013 offset the 2014 income. At the end of 2014, the company anticipated future "more likely than not" pretax income of $30,000. 8. The statutory tax rate since 2013 has been as follows on pretax income: 15% on the first $50,000, 25% on the next $25,000, 30% on the next $25,000, and 35% on all remaining income. Require Prepare a corrected condensed income statement for the second quarter of 2015. Problem 12-6 (LO 7, 8) Assorted questions regarding segmental reporting. You are presenting segmental information regarding your company to the finance committee of the board of directors and have been asked the following questions. Provide your response to each of the following questions: 1. How is it possible that the distribution of wine and spirits have been combined with the dis- tribution of personal care products to constitute a single operating segment? 2. Why don't the third-quarter revenues traceable to reportable segments agree with the third- quarter revenues shown in the consolidated income statement? 3. from a competitive standpoint, would it be better to show more or fewer segments on our financial statements? 4. How is it possible that two of our segments, which have immaterial sales revenue compared to consolidated sales revenue, are being shown as reportable segments? 5. How is interest expense on the company's bonds payable allocated to the various segments? 6. How is it possible that the total of segmental net sales exceeds the net sales for the entire company? 7. Is it possible to roughly calculate a segment's annual cash flow? S 455 n ad prelax amounts as follows. The first quarter of 2015 reported and no tax benefit was recognized. At the end of the first quarter o f Forested pretax income of $100,000 for the balance of the year. At the end of the durer of 2015, management forecasted pretax income of $78,000 for the balance of the year 7. Ignoring any corrections suggested by the above data, prior to 2015 the company reported a pretax loss of $50,000 in 2013 and a $7,500 tax benefic assuming "more likely than not that there would be adequate income in 2014. The company reported pretax income of $20,000 in 2014 and no related tax expense since the loss in 2013 offset the 2014 income. At the end of 2014, the company anticipated future "more likely than not" pretax income of $30,000. 8. The statutory tax rate since 2013 has been as follows on pretax income: 15% on the first $50,000, 25% on the next $25,000, 30% on the next $25,000, and 35% on all remaining income. Require Prepare a corrected condensed income statement for the second quarter of 2015. Problem 12-6 (LO 7, 8) Assorted questions regarding segmental reporting. You are presenting segmental information regarding your company to the finance committee of the board of directors and have been asked the following questions. Provide your response to each of the following questions: 1. How is it possible that the distribution of wine and spirits have been combined with the dis- tribution of personal care products to constitute a single operating segment? 2. Why don't the third-quarter revenues traceable to reportable segments agree with the third- quarter revenues shown in the consolidated income statement? 3. from a competitive standpoint, would it be better to show more or fewer segments on our financial statements? 4. How is it possible that two of our segments, which have immaterial sales revenue compared to consolidated sales revenue, are being shown as reportable segments? 5. How is interest expense on the company's bonds payable allocated to the various segments? 6. How is it possible that the total of segmental net sales exceeds the net sales for the entire company? 7. Is it possible to roughly calculate a segment's annual cash flow