Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Required information [The following information applies to the questions displayed below.] Following is financial information describing the six operating segments that make up Fairfield, Inc.

Required information

[The following information applies to the questions displayed below.]

Following is financial information describing the six operating segments that make up Fairfield, Inc. (in thousands):

Segments
Red Blue Green Pink Black White
Sales to outside parties $ 1,820 $ 821 $ 523 $ 318 $ 130 $ 108
Intersegment revenues 25 100 118 0 25 311
Salary expense 623 388 411 321 326 71
Rent expense 148 175 90 101 51 40
Interest expense 74 68 91 58 23 14
Income tax expense (savings) 150 96 70 (95 ) (73 ) 0

Consider the following questions independently. None of the six segments has a primarily financial nature.

a. What minimum revenue amount must any one segment generate to be of significant size to require disaggregated disclosure? (Enter your answer in dollars but not in thousands.)

c. What volume of revenues must a single customer generate to necessitate disclosing the existence of a major customer? (Enter your answer in dollars but not in thousands.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Intermediate Accounting Volume 1

Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield

17th Edition

1119613698, 978-1119613695

More Books

Students also viewed these Accounting questions