Amalgamated Energy has three segments, Solar Energy, Hydro Electric, and Wind. Their December 31, 2020 Balance Sheet, broken down by segment as well as in total, is as follows: Segment Assets & Liabilities @ Book Value Consolidated (#'s in Millions) Balance Sheet Hydro 200 ASSETS Solar Wind Cash 100 100 400 Inventory 50 50 100 200 2,000 ( 500) 100 1,000 ( 400) 200 3,500 (1,000) 600 PP&E 500 Accum. Depreciation Goodwill ( 100) 300 TOTAL ASSETS 850 1,850 1,000 3,700 LIABILITIES Accts. Payable Bonds/Loans Payable 100 400 300 800 1,000 1,000 EQUITY Contributed Capital Retained Earnings TOTAL LIAB & EQUITY 1,300 600 3,700 During 2020, Net Income of the various segments, as well as consolidated Net Income, was as follows: Solar $ 50 Hydro $ 80 Wind $ 10 Consolidated $ 140 2020 Net Income А. (1) Assuming that you considered only the "Total Assets" test for Segment Reporting, which of the segments would be required to disclose segment information? В. (1) Assuming that you considered only the “Profitability" test for Segment Reporting, which of the segments would be required to disclose segment information?
Amalgamated Energy has three segments, Solar Energy, Hydro Electric, and Wind. Their December 31, 2020 Balance Sheet, broken down by segment as well as in total, is as follows: Segment Assets & Liabilities @ Book Value Consolidated (#'s in Millions) Balance Sheet Hydro 200 ASSETS Solar Wind Cash 100 100 400 Inventory 50 50 100 200 2,000 ( 500) 100 1,000 ( 400) 200 3,500 (1,000) 600 PP&E 500 Accum. Depreciation Goodwill ( 100) 300 TOTAL ASSETS 850 1,850 1,000 3,700 LIABILITIES Accts. Payable Bonds/Loans Payable 100 400 300 800 1,000 1,000 EQUITY Contributed Capital Retained Earnings TOTAL LIAB & EQUITY 1,300 600 3,700 During 2020, Net Income of the various segments, as well as consolidated Net Income, was as follows: Solar $ 50 Hydro $ 80 Wind $ 10 Consolidated $ 140 2020 Net Income А. (1) Assuming that you considered only the "Total Assets" test for Segment Reporting, which of the segments would be required to disclose segment information? В. (1) Assuming that you considered only the “Profitability" test for Segment Reporting, which of the segments would be required to disclose segment information?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Amalgamated Energy has three segments, Solar Energy, Hydro Electric, and Wind. Their
December 31, 2020 Balance Sheet, broken down by segment as well as in total, is as follows:
Segment Assets & Liabilities
@ Book Value
Consolidated
(#'s in Millions)
Balance Sheet
ASSETS
Solar
100
50
Hydro
200
50
Wind
100
Cash
400
200
3,500
(1,000)
600
Inventory
100
2,000
( 500)
100
500
1,000
( 400)
200
PP&E
Accum. Depreciation
( 100)
300
Goodwill
TOTAL ASSETS
850
1,850
1,000
3,700
LIABILITIES
Accts. Payable
Bonds/Loans Payable
100
400
300
800
1,000
1,000
EQUITY
Contributed Capital
Retained Earnings
TOTAL LIAB & EQUITY
1,300
600
3,700
During 2020, Net Income of the various segments, as well as consolidated Net Income,
was as follows:
Solar
$ 50
Hydro
$ 80
Wind
$ 10
Consolidated
2020 Net Income
$
140
А. (1)
Assuming that you considered only the "Total Assets" test for Segment Reporting,
which of the segments would be required to disclose segment information?
В. (1)
Assuming that you considered only the "Profitability" test for Segment Reporting,
which of the segments would be required to disclose segment information?
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