Chevalier Company has identified five Industry segments: plastics, metals, lumber, paper, and finance. It appropriately consolidated each of these segments in producing its annual financial statements. Information describing each segment (in thousands) follows: Accounts Sales to outside parties Plastics $ 6,694 Metals $ 2,354 Lumber $ 711 Intersegment sales 148 173 138 Paper $ 422 150 Finance $ 0 0 Interest income from outside parties Interest income from intersegment loans 0 34 21 0 42 0 0 0 0 201 Operating expenses Interest expense Tangible assets Intangible assets Intersegment loans (debt) 4,214 76 1,762 1,066 654 31 31 66 28 102 1,501 87 0 3,196 403 0 524 0 771 179 63 0 0 706 Chevalier does not allocate its $1,460,000 in common expenses to the various segments. Required: a1. Perform revenue test procedure to determine Chevalier's reportable operating segments. a2. Perform profit or loss test procedure to determine Chevalier's reportable operating segments. a3. Perform asset test procedure to determine Chevalier's reportable operating segments. Complete this question by entering your answers in the tabs below. Revenue Test Profit or Loss Test Asset Test Perform revenue test procedure to determine Chevalier's reportable operating segments. Note: Round your percentage answers to 1 decimal place. Enter your answers in thousands of dollars. Segment Revenues Percentage Reported or Not Reported Plastics Metals % Lumber % Paper Finance % Total $ 0.0 %
Chevalier Company has identified five Industry segments: plastics, metals, lumber, paper, and finance. It appropriately consolidated each of these segments in producing its annual financial statements. Information describing each segment (in thousands) follows: Accounts Sales to outside parties Plastics $ 6,694 Metals $ 2,354 Lumber $ 711 Intersegment sales 148 173 138 Paper $ 422 150 Finance $ 0 0 Interest income from outside parties Interest income from intersegment loans 0 34 21 0 42 0 0 0 0 201 Operating expenses Interest expense Tangible assets Intangible assets Intersegment loans (debt) 4,214 76 1,762 1,066 654 31 31 66 28 102 1,501 87 0 3,196 403 0 524 0 771 179 63 0 0 706 Chevalier does not allocate its $1,460,000 in common expenses to the various segments. Required: a1. Perform revenue test procedure to determine Chevalier's reportable operating segments. a2. Perform profit or loss test procedure to determine Chevalier's reportable operating segments. a3. Perform asset test procedure to determine Chevalier's reportable operating segments. Complete this question by entering your answers in the tabs below. Revenue Test Profit or Loss Test Asset Test Perform revenue test procedure to determine Chevalier's reportable operating segments. Note: Round your percentage answers to 1 decimal place. Enter your answers in thousands of dollars. Segment Revenues Percentage Reported or Not Reported Plastics Metals % Lumber % Paper Finance % Total $ 0.0 %
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter15: Financial Statement Analysis
Section: Chapter Questions
Problem 57P: Grammatico Company has just completed its third year of operations. The income statement is as...
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Transcribed Image Text:Chevalier Company has identified five industry segments: plastics, metals, lumber, paper, and finance.
It appropriately consolidated each of these segments in producing its annual financial statements. Information describing each
segment (in thousands) follows:
Accounts
Sales to outside parties
Intersegment sales
Interest income from outside parties
Interest income from intersegment loans
Operating expenses
Interest expense
Tangible assets
Intangible assets
Intersegment loans (debt)
Plastics
$ 6,694
Metals
$ 2,354
Lumber
$ 711
148
173
138
Paper
$ 422
150
Finance
$ 0
0
0
34
21
0
42
0
0
0
0
201
4,214
76
1,762
1,066
654
31
31
66
28
102
1,501
87
3,196
524
771
179
0
403
0
0
63
0
0
0
706
Chevalier does not allocate its $1,460,000 in common expenses to the various segments.
Required:
a1. Perform revenue test procedure to determine Chevalier's reportable operating segments.
a2. Perform profit or loss test procedure to determine Chevalier's reportable operating segments.
a3. Perform asset test procedure to determine Chevalier's reportable operating segments.
Complete this question by entering your answers in the tabs below.
Revenue Test
Profit or Loss
Test
Asset Test
Perform revenue test procedure to determine Chevalier's reportable operating segments.
Note: Round your percentage answers to 1 decimal place. Enter your answers in thousands of dollars.
Segment
Revenues
Reported or Not
Reported
Plastics
Metals
Lumber
Percentage
%
%
%
Paper
Finance
%
Total
$
0
0.0 %
< Revenue Test
Profit or Loss Test >
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VIEWStep 3: Requirement a2 - Perform profit or loss test to determine C's reportable operating segments
VIEWStep 4: Requirement a3 - Perform asset test to determine C's reportable operating segments
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