Question
Sunland Company's condensed income statement is presented below: Revenues$960,000ExpensesCost of goods sold$400,000Operating and administrative expenses201,000Depreciation expense32,000633,000Income before taxes327,000Income tax expenses78,000Net income$249,000Earnings per share (100,000 shares)$2.49
Sunland Company's condensed income statement is presented below:
Revenues$960,000ExpensesCost of goods sold$400,000Operating and administrative expenses201,000Depreciation expense32,000633,000Income before taxes327,000Income tax expenses78,000Net income$249,000Earnings per share (100,000 shares)$2.49
The following data is compiled relative to Sunland's operating segments:
Percent Identified with SegmentHotelsGrainsCandyRevenues42%50%8%Cost of goods sold46494Operating and administrative expense365015Depreciation expense434011
Included in the amounts allocated to each segment on the above percentages are the following expenses which relate to general corporate activities:
Operating SegmentHotelsGrainsCandyTotalsOperating and administrative expense$13,000$6,800$3,700$23,500Depreciation expense2,1005,3002,90010,300
(a)
a schedule showing the amounts distributed to each segment.
Operating SegmentHotelsGrainsCandyTotalsRevenues$
$
$
$
ExpensesCost of goods sold
Operating and admin. expense
Depreciation expense
Total expenses
Operating profit$
$
$
$
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