Académique Documents
Professionnel Documents
Culture Documents
Problem 1:
Plastics Inc is a company that operates in four different divisions. The following information relating to each segment is available for 2013.
Sales revenue Bottles Containers Dollhouses Silverware $ 65,000 $ 95,000 $ 620,000 $18,000
Sales of segments Containers and Dollhouses included intersegment sales of $30,000 and $150,000, respectively. Required Determine which of the segments are reportable based on the: Revenue Test Operating profit (loss) test. Identifiable assets test.
Answer Determination of reportable segments: 1 Total Revenue 10% Rev $ 798,000 $ 79,800 Bottles Containers Dollhouses Silverware 2 Oper Profit 10% Profit $ 161,500 $ 16,150 Bottles Containers Dollhouses Silverware 3 Ident Assets 10% assets $ 822,000 $ 82,200 Bottles Containers Dollhouses Silverware no Yes Yes no Yes no Yes no no no Yes no