Company A and its divisions are engaged solely in manufacturingoperations. The following data pertain to the industries in whichoperations were conducted for the year ended December 31, 2019.IndustryRevenueProfitAssetsRed8,000,000(1,320,000)16,000,000Orange6,400,000920,00014,000,000460,00010,000,000Yellow4,800,0002,200,000(420,000)5,300,000Green(240,000)5,600,000Blue3,400,000180,0002,400,000Purple1,200,000Calculate the materiality threshold that would be used under theprofit or loss test to determine which segments are reportable.

Segment Reporting means the reporting of the operating segments of the company in the disclosures of…

Answered: Company A and its divisions are engaged…

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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Century Company, a diversified manufacturing company, had four separate operating divisions engaged in the manufacture of products in each of the following areas: food products, health aids, textiles, and office equipment. Financial data for the 2 years ended December 31, 2020 and 2019 are presented here: Net Sales 2020 2019 Food products $3,500,000 $3,000,000 Health aids 2,000,000 1,270,000 Textiles 1,580,000 1,400,000 Office equipment 920,000 1,330,000 $8,000,000 $7,000,000 Cost of Sales 2020 2019 Food products $2,400,000 $1,800,000 Health aids 1,100,000 700,000 Textiles 500,000 900,000 Office equipment 800,000 1,000,000 $4,800,000 $4,400,000 Operating Expenses 2020 2019 Food products $ 600,000 $ 300,000 Health aids 250,000 150,000 Textiles 200,000 100,000 Office equipment 650,000 750,000 $1,700,000 $1,300,000 On January 1, 2020, Century adopted a plan to sell the assets and product line of the office equipment…
The following financial information was summarized from the accounting records of Train Corporation for the current year ended December 31: RailsDivision LocomotiveDivision CorporateTotal Cost of goods sold $46,700 $29,300 Direct operating expenses 26,400 20,400 Sales 98,200 69,700 Interest expense $2,200 General overhead 19,900 Income tax 4,500 The net income for Train Corporation is a.$73,800 b.$91,900 c.$18,500
Crane Company has four operating divisions. During the first quarter of 2022, the company reported aggregate income from operations of $ 210,600 and the following divisional results. Division I II III IV Sales $ 245,000 $ 197,000 $ 504,000 $ 450,000 Cost of goods sold 200,000 192,000 301,000 249,000 Selling and administrative expenses 72,400 63,000 58,000 50,000 Income (loss) from operations $ ( 27,400) $ ( 58,000) $ 145,000 $ 151,000 Analysis reveals the following percentages of variable costs in each division. I II III IV Cost of goods sold 73 % 91 % 82 % 75 % Selling and administrative expenses 39 59 50 61 Discontinuance of any division would save 50% of the fixed costs and expenses for that division.Top management is very concerned about the unprofitable divisions (I and II). Consensus is that one or both of the…
1 ) Retail Division = ( 1125 / 2500 ) x 264000 = 118800 commercial division = ( 1375 / 2500 ) x 264000 = $ 145200 Using the data for Lee Company above along with the following data, determine the divisional income from operations for the Division and the Commercial Division:
Case 12. GLK Corporation and its divisions are engaged solely in manufacturing. The following data pertain to the industries in which operations were conducted for the current year: Operating profit (loss) Segment A 10,000,000 Segment B 2,000,000 Segment C (11,000,000) Segment D 3,000,000 Segment E (12,000,000) 12. In its segment information for the current year, which is (are) not a reportable segment(s)?a. A, B, Cb. B, D c. Bd. None
onL... Use this information for Train Corporation to answer the question that follow. The following financial information was summarized from the accounting records of Train Corporation for the current year ended December 31: Rails Locomotive Corporate Division Division Total Cost of goods sold $45,700 $28,800 Direct operating expenses 27,600 22,800 Sales 94,100 68,700 Interest expense $2,600 General overhead 19,700 Income tax 4,400 The gross profit for the Rails Division is Oa. s20,800 Ob. $94,100 Oc. $48,400 Od. $66,500 Previous Next 7:32 PM CP 17/13/20
All products at Luke Corp. are allocated a portion of corporate overhead costs, which is computed as a percent of product revenue. The percentage rate is based on the level of corporate costs as a percentage of revenues. Data on corporate costs and revenues for the past two years were stated as: Corporate Revenue Corporate Overhead Costs Most recent year $ 112,750,000 $ 10,237,500 Previous year $ 76,200,000 $ 7,921,000 Using the data in the table apply the high low method (based on revenues) to determine the variable corporate overhead costs per sales dollar. Round to the nearest 0.001.
Ivanhoe Company is involved in four separate industries. The following information is available for each of the four industries. Operating Profit (Loss) $16,780 Operating Segment Total Revenue Identifiable Assets $63,800 $160,370 X 10,990 2,550 80,185 Y 27,500 (3,240) 19,355 7,710 1,210 16,590 $110,000 $17,300 $276,500 Determine which of the operating segments are reportable based on the: Reportable Segments (a) Revenue test. (b) Operating profit (loss) test. (c) Identifiable assets test.
PDT Co. has two divisions, East and West. Invested assets and condensed income statement data for each division for the past year ended December 31 are as follows: East Division West Division Revenues $1,200,000 $800,000 Operating expenses 950,000 640,000 Service department charges 145,000 72,000 Invested assets 800,000 500,000 a. Prepare condensed income statements for the past year for each division. PDT Co. Divisional Income Statements For the Year Ended December 31, 20-- East Division West Division Revenues Operating expenses X Operating income before service department charges X Service department charges X Operating income b. Using the expanded expression, determine the profit margin, investment turnover, and rate of return on investment for each division. Round your answers to two decimal places and do not enter the percent sign (for example, enter 10.25% as "10.25"). East Division West Division Profit margin X % X % Investment turnover Rate of return on investment X % X %
The following financial information was summarized from the accounting records of Train Corporation for the current year ended December 31: Locomotive Division Cost of goods sold Direct operating expenses Sales Interest expense General overhead. Income tax Rails Division $ 47,200 27,200 108,000 The income from operations for the Rails Division is O $21,150 Ob. $33,600 O $8,700 O d. $60,800 $30,720 20,040 78,000 Corporate Total $2,040 18,160 4,700
The following financial information was summarized from the accounting records of Train Corporation for the current year ended December 31: Rails Division Locomotive Division Corporate Total Cost of goods sold $45,400 $28,200 Direct operating expenses 27,600 22,400 Sales 99,800 66,800 Interest expense $2,000 General overhead 18,100 Income tax 4,200 The gross profit for the Locomotive Division is

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