(Segmented Reporting)

FratBro23
Category:
Accounting
Price: $25 USD

Question description

P24-2. 

(Segmented Reporting)

[img alt="" border="0" height="1" width="50" src="http://edugen.wiley.com/edugen/courses/crs7181/common/art/pixel.gif">
Cineplex Corporation is a diversified company that operates in five different industries: A, B, C, D, and E. The following information relating to each segment is available for 2015.

A

B

C

D

E

Sales revenue

$40,000

$ 75,000 

$580,000

$35,000

$55,000

Cost of goods sold

19,000

50,000 

270,000

19,000

30,000

Operating expenses

10,000

40,000 

235,000

12,000

18,000

Total expenses

29,000

90,000 

505,000

31,000

48,000

Operating profit (loss)

$11,000

$(15,000)

$ 75,000

$ 4,000

$ 7,000

Identifiable assets

$35,000

$ 80,000 

$500,000

$65,000

$50,000

Sales of segments B and C included intersegment sales of $20,000 and $100,000, respectively.

Instructions

(a) 
Determine which of the segments are reportable based on the:

(1) 
Revenue test.

(2) 
Operating profit (loss) test.

(3) 
Identifiable assets test.

(b) 
Prepare the necessary disclosures required by GAAP.


Tutor Answer

(Top Tutor) Daniel C.
(997)
School: UT Austin
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