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Problem 9 plz help XYZ Corporation has eight industry segments with sales, operating profit and loss, and identifiable assets at and for the year ended

Problem 9

plz help

XYZ Corporation has eight industry segments with sales, operating profit and loss, and identifiable assets at and for the year ended December 31, 2011, as follows:

Sales to Unaffiliated Customers

Sales to Affiliated Customers

Profit or (Loss)

Segment

Assets

Steel

$1,350,000

$150,000

$265,000

$2,250,000

Auto Parts

1,200,000

---

450,000

1,430,000

Coal Mine

600,000

450,000

(300,000)

1,200,000

Textiles

530,000

220,000

150,000

750,000

Paint

1,120,000

380,000

300,000

1,050,000

Lumber

710,000

---

(75,000)

600,000

Leisure Time

690,000

---

110,000

450,000

Electronics

600,000

---

300,000

670,000

Total

$6,800,000

$1,200,000

$1,200,000

$8,400,000

Required:

A. Identify the segments, which are reportable segments under one or more of the 10 percent revenue, operating profit, or assets tests.

B. After reportable segments are determined under the 10 percent tests, they must be reevaluated under a 75 percent revenue test before a final determination of reportable segments can be made. Under this 75 percent test, identify if any other segments may have to be reported.

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