Problem no 6: Finney Company's condensed income statement is presented below: Revenues $1,000,000 Expenses Cost of goods sold $400.000 Operating and administrative expenses 200,000 Depreciation expense 40.000 640.000 Income before taxes 360,000 Income tax expenses 108.000 Net income $ 252.000 Earnings per share (100,000 shares) $2.52 The following data is compiled relative to Finney's operating segments: Percent Identified with Segment Hotels Grains Candy Revenues 42% 50% 8% Cost of goods sold 48 49 35 Operating and administrative expense 15 42 46 Depreciation expense 12 3 50 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 $12,000 $9,000 $3,000 $24.000 Depreciation expense 3,500 4,000 2,500 10,000 Instructions (a) Compute operating profit for each segment. (b) Based only on the above information, which segments must be reported and why