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Taft Corporation operates primarily in the United States. However, a few years ago, it opened a plant in Spain to produce to sell there.
Taft Corporation operates primarily in the United States. However, a few years ago, it opened a plant in Spain to produce to sell there. This foreign operation has been so successful that during the past 24 months the company started a manufa in Italy and another in Greece. Financial Information for each of these facilities follows: Sales Intersegment transfers Operating expenses $ 209,000 Interest expense Income taxes Long-lived assets Spain Italy $ 634,000 e 102,500 Greece $ 484,000 94,000 206,000 240,000 224,000 27,000 40,000 30,000 78,000 125,000 30,000 45,000 184,000 134,000 The company's domestic (U.S.) operations reported the following information for the current year: Sales to unaffiliated customers Intersegment transfers. Operating expenses Interest expense Income taxes Long-lived assets $ 4,610,000 482,000 2,465,000 170,000 874,000 2,255,000 Taft has adopted the following criteria for determining the materiality of an individual foreign country: (1) Sales to unaffiliatec within a country are 10 percent or more of consolidated sales, or (2) long-lived assets within a country are 10 percent or mor consolidated long-lived assets. a. Calculate sales to unaffiliated customers within a country and as a percent of the consolidated sales. b. Calculate long-lived assets within a country and as a percentage of the long-lived assets. Taft Corporation operates primarily in the United States. However, a few years ago, it opened a plant in Spain to produce to sell there. This foreign operation has been so successful that during the past 24 months the company started a manufa in Italy and another in Greece. Financial Information for each of these facilities follows: Sales Intersegment transfers Operating expenses $ 209,000 Interest expense Income taxes Long-lived assets Spain Italy $ 634,000 e 102,500 Greece $ 484,000 94,000 206,000 240,000 224,000 27,000 40,000 30,000 78,000 125,000 30,000 45,000 184,000 134,000 The company's domestic (U.S.) operations reported the following information for the current year: Sales to unaffiliated customers Intersegment transfers. Operating expenses Interest expense Income taxes Long-lived assets $ 4,610,000 482,000 2,465,000 170,000 874,000 2,255,000 Taft has adopted the following criteria for determining the materiality of an individual foreign country: (1) Sales to unaffiliatec within a country are 10 percent or more of consolidated sales, or (2) long-lived assets within a country are 10 percent or mor consolidated long-lived assets. a. Calculate sales to unaffiliated customers within a country and as a percent of the consolidated sales. b. Calculate long-lived assets within a country and as a percentage of the long-lived assets.
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