Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

To manage its operations, Excellent, Inc. reports to top management on five different segments which are consolidated appropriately for the annual financial statements. Information about

image text in transcribed
To manage its operations, Excellent, Inc. reports to top management on five different segments which are consolidated appropriately for the annual financial statements. Information about each segment included in the current year's consolidated statements appears in the table below (in 000's): Tarps Seats Shades Benches Finance $8,220 $2,790 $830 $1,450 $-0- Sales to outside parties Intersegment revenues 140 170 130 140 -0- -0- 30 10 -0- 250 Outside parties interest income Intersegment interest income -0- -0- -0- -0- 210 Operating expenses 5,090 2,100 1,390 750 20 Interest expense 80 20 170 40 Tangible assets 1,620 3,880 690 730 Intangible assets 120 480 20 60 Excellent, Inc. has $530,000 of corporate expenses that it does not allocate to the segments. Carry out a. the revenue test, b. the profit and loss test, and c. the asset test to determine which segments are separately reportable. Clearly show the results of each test and your decision on each test. 110 140 870

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

Master The Art Of House Flipping

Authors: Livia V. Velez

1st Edition

979-8865806561

More Books

Students also viewed these Finance questions