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Problem 8 - 3 5 ( Algo ) ( LO 8 - 2 ) Ecru Company has identified five industry segments: plastics, metals, lumber, paper,
Problem AlgoLO
Ecru Company has identified five industry segments: plastics, metals, lumber, paper, and finance.
It appropriately consolidated each of these segments in producing its annual financial statements. Information describing each segment in thousands follows:
tablePlastics,Metals,Lumber,Paper,Finance,Sales to outside parties,$$$$$Intersegment transfers,Interest income from outside parties,Interest income from intersegment loans,Operating expenses,Interest expense,Tangible assets,Intangible assets,Intersegment loans debt
Ecru does not allocate its $ in common expenses to the various segments.
Perform testing procedures to determine Ecru's reportable operating segments.
a Revenue test:
b Profit or loss test:
c Asset test:
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