Problem 24-2

Pharoah Corporation is a diversified company that operates in five different industries: A, B, C, D, and E. The following information relating to each segment is available for 2018.

A

B

C

D

E

Sales revenue $39,600 $76,200 $575,500 $34,400 $54,400

Cost of goods sold 19,100 49,600 267,500 19,300 30,300

Operating expenses 10,200 39,400 231,500 11,900 18,300

Total expenses 29,300 89,000 499,000 31,200 48,600

Operating profit (loss) $10,300 $(12,800) $76,500 $3,200 $5,800

Identifiable assets $35,400 $79,400 $509,700 $64,300 $50,300

Sales of segments B and C included intersegment sales of $20,200 and $101,700, respectively.

(a) Determine which of the segments are reportable based on the:

Reportable Segment

(1) Revenue test.

(2) Operating profit (loss) test.

(3) Identifiable assets test.

(b) Prepare the necessary disclosures required by GAAP. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

A

B

C

Other

Totals

External Revenues

$

$

$

$

$

Intersegment Revenues

Total Revenues

$

Cost of Goods Sold

Operating Expenses

Total Expenses

Operating Profit (Loss)

$

$

$

$

$

Identifiable Assets

$

$

$

$

$

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