Carla Vista Company's condensed income statement is presented below:Revenues $977,000 Expenses Cost of goods sold $400,000 Operating and administrative expenses 186,000 Depreciation expense 32,000 618,000 Income before taxes 359,000 Income tax expenses 78,000 Net income $281,000 Earnings per share (100,000 shares) $2.81 The following data is compiled relative to Carla Vista's operating segments: Percent Identified with Segment Hotels Grains Candy Revenues 42% 50% 8% Cost of goods sold 46 46 8 Operating and administrative expense 34 50 16 Depreciation expense 45 42 13 Included in the amounts allocated to each segment on the above percentages are the following expenses which relate to general corporate activities: Operating Segment Hotels Grains Candy Totals Operating and administrative expense $13,000 $6,700 $3,000 $22,700 Depreciation expense 4,700 2,700 3,800 11,200 (a) Prepare a schedule showing the amounts distributed to each segment. Operating Segment Hotels Grains Candy Totals Revenues $ $ $ $ Expenses Cost of goods sold Operating and admin. expense Depreciation expense Total expenses Operating profit $ $ $ $

Operating profit is calculated by deducting the expenses from the revenues of the company.

Answered: Carla Vista Company's condensed income…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Carla Vista Company's condensed income statement is presented below:

Revenues			$977,000
Expenses
	Cost of goods sold	$400,000
	Operating and administrative expenses	186,000
	Depreciation expense	32,000		618,000
Income before taxes			359,000
Income tax expenses			78,000
Net income			$281,000
Earnings per share (100,000 shares)			$2.81

The following data is compiled relative to Carla Vista's operating segments:

	Percent Identified with Segment
	Hotels		Grains		Candy
Revenues	42	%		50	%	8	%
Cost of goods sold	46			46		8
Operating and administrative expense	34			50		16
Depreciation expense	45			42		13

Included in the amounts allocated to each segment on the above percentages are the following expenses which relate to general corporate activities:

	Operating Segment
	Hotels	Grains		Candy	Totals
Operating and administrative expense	$13,000		$6,700		$3,000	$22,700
Depreciation expense	4,700		2,700		3,800	11,200

(a) Prepare a schedule showing the amounts distributed to each segment.

Operating Segment

Hotels

Grains

Candy

Totals

Revenues

Expenses

Cost of goods sold

Operating and admin. expense

Depreciation expense

Total expenses

Operating profit

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