Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The following is financial information describing the six operating segments that make up Fairfield, Inc. (in thousands): Segments Red Blue Green Pink Black White Sales

The following is financial information describing the six operating segments that make up Fairfield, Inc. (in thousands):

Segments
Red Blue Green Pink Black White
Sales to outside parties $ 1,814 $ 815 $ 517 $ 312 $ 124 $ 102
Intersegment revenues 19 94 112 0 19 305
Salary expense 617 382 405 315 320 65
Rent expense 142 169 84 95 45 34
Interest expense 68 62 85 52 17 8
Income tax expense (savings) 144 90 64 (89 ) (67 ) 0

Consider the following questions independently. None of the six segments have a primarily financial nature.

a. What minimum revenue amount must any one segment generate to be of significant size to require disaggregated disclosure? (Enter your answer in dollars but not in thousands.)

b. What volume of revenues must a single customer generate to necessitate disclosing the existence of a major customer? (Enter your answer in dollars but not in thousands.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fundamentals Of Entrepreneurial Finance

Authors: Marco Da Rin, Thomas Hellmann

8th Edition

0199744750, 9780199744756

More Books

Students also viewed these Accounting questions