Question
Slatter Corporation operates primarily in the United States. However, a few years ago, it opened a plant in Spain to produce merchandise to sell there.
Slatter Corporation operates primarily in the United States. However, a few years ago, it opened a plant in Spain to produce merchandise to sell there. This foreign operation has been so successful that during the past 24 months the company started a manufacturing plant in Italy and another in Greece. Financial information for each of these facilities follows:
Spain | Italy | Greece | ||||
Sales | $ | 425,000 | $ | 302,000 | $ | 493,000 |
Intersegment transfers | 0 | 0 | 92,000 | |||
Operating expenses | 202,000 | 236,000 | 220,000 | |||
Interest expense | 28,000 | 41,000 | 31,000 | |||
Income taxes | 79,000 | 31,000 | 46,000 | |||
Long-lived assets | 221,000 | 136,000 | 102,000 | |||
|
The companys domestic (U.S.) operations reported the following information for the current year: |
Sales to unaffiliated customers | $ | 4,730,000 |
Intersegment transfers | 487,000 | |
Operating expenses | 2,470,000 | |
Interest expense | 166,000 | |
Income taxes | 879,000 | |
Long-lived assets | 1,954,000 | |
Slatter has adopted certain criteria (each of the following requirements) for determining the materiality of an individual foreign country: |
a. | Calculate sales to unaffiliated customers within a country and as a percent of the consolidated sales.(Round your percentage answers to 1 decimal place.) I ONLY NEED PERCENTAGES REVENUES ARE CORRECT!!!!!!!!!!!!!!!!!!! |
Segment Revenue Percent
United States 4,730,000
Spain 425,000
Italy 302,000
Greece 493,000
B) Calculate Long-Lived within a country and as a percentage of the Long-Lived Assets. (Round your percentage answers to 1 decimal place.)
Segment Asset Percent
United States 1,954,000
Spain 221,000
Italy 136,000
Greece 102,000
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