PROBLEM 6. $500,000 The condensed income statement below is available for PT AIM International. Revenues Expenses Cost of goods sold $200,000 Operating and administrative expenses 100,000 Depreciation expense 20,000 Income before taxes Income tax expenses Net income Earnings per share (100,000 shares) 320,000 180,000 54,000 $ 126,000 $1.26 In addition, the information related to PT AIM's operating segments is presented as follows. Percent Identified with Segment Hotels Grains Candy Revenues 42% 50% 8% Cost of goods sold 48 49 3 Operating and administrative expense 35 50 15 Depreciation expense 46 12 42 Included in the amounts allocated to each segment on the above percentages are the following expenses which relate to general corporate activities: Operating Segment Hotels Grains Candy Totals Operating and administrative expense $6,000 $4,500 $1,500 $12,000 Depreciation expense 1,750 2,000 1,250 5,000 Instructions (a) Compute operating profit for each segment. (b) Based only on the above information, which segments must be reported and why