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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 merchandise to sell there.
Taft 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 $ 216,000 Sales Intersegment transfers Operating expenses Interest expense Income taxes Long-lived assets 210,000 29,000 80,000 130,000 Italy $ 638,000 102,300 244,000 42,000 32,000 188,000 Greece $ 488,000 98,000 228,000 32,000 47,000 138,000 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 $ 4,630,000 492,000 2,475,000 174,000 884,000 2,265,000 Taft has adopted the following criteria for determining the materiality of an individual foreign country: (1) Sales to unaffiliated customers within a country are 10 percent or more of consolidated sales, or (2) long-lived assets within a country are 10 percent or more of 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. c. Apply Taft's materiality tests to identify the countries which are 10 percent or more of consolidated sales or consolidated long-lived assets to be reported separately. Complete this question by entering your answers in the tabs below. Required A Required B Required C Calculate sales to unaffiliated customers within a country and as a percent of the consolidated sales. (Round your percentage answers to 2 decimal places.) Revenues Percentage Jnited States % Spain taly Greece % % Total $ 0 0.00% Complete this question by entering your answers in the tabs below. Required A Required B Required C Calculate long-lived assets within a country and as a percentage of the long-lived assets. (Round your percentage answers to 2 decimal places.) Assets Percentage % United States % Spain Italy % Greece % Total $ 0 0.00% Complete this question by entering your answers in the tabs below. Required A Required B Required C Apply Taft's materiality tests to identify the countries which are 10 percent or more of consolidated sales or consolidated long- lived assets to be reported separately. Identify the countries which are 10 percent or more of consolidated sales
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