Segment Reporting (Appendix 5.1) Parks Conglomerate Company does business in several different industries. The following is a 2016 condensed income statement for the entire company: Sales $300,000 Less: Cost of goods sold $140,000 30,000 Depreciation expense Other operating expenses 60,000 Total expenses (230,000) Pretax income $70,000 (21,000) Income tax expense Net income $49,000 Earnings per share (20,000 shares) $2.45 Parks has two major operating segments, A and B. No other operating segment contributes 10% or more of the company's activities. Segments A and B make no sales to each other or to the other segments of the company. An analysis reveals that $2,000 of the total depreciation expense and $6,000 of the total other operating expenses are related to general corporate activities. The remaining expenses and total revenues are directly allocable to segment activities according to the following percentages: Percent Identified with Segment A Segment B Other Segments Sales 40 % 46 % 14 % 35 50 15 Cost of goods sold Depreciation expense Other operating expenses 40 45 15 42 40 18 Required: Prepare a schedule that reports on the revenues and profit of Segments A and B and the other operating segments of Parks for 2018. Be sure to reconcile these amounts with the related totals on the preceding income statement. Use a minus sign to enter any subtractive numbers (i.e. expenses). PARKS CONGLOMERATE COMPANY Industry Segment Financial Results For Year Ended December 31, 2018 Reportable Reportable All Other Total Operating Operating Segments Results Segment A Segment B 120,000 138,000 42,000 Segment revenues (sales) $ 300,000 Segment profit (pretax) $ 78,000 General corporate expenses -8.000 Pretax income $ 70,000