Exercise 15-40 (Algo) Segment Reporting (LO 15-5) Eastlawn Travel has two operating divisions, Tours and Resorts. The two divisions meet the requirements for segment disclosures. Before transactions between the two divisions are considered, revenues and costs are as follows: Revenues Costs Tours $ 35,400,000 19,900,000 Resorts $ 24,400,000 17,700,000 The two divisions have an arrangement by which Resorts gives coupons redeemable for tours and Tours gives discount coupons good for stays at a resort. The value of the coupons for the tours redeemed during the past year totaled $7.3 million. The discount coupons. redeemed at the resorts totaled $4.2 million. As of the end of the year, all coupons for the current year expired. Tours Resorts Required: What are the operating profits for each division considering the effects of the costs arising from the joint agreement? Note: Enter your answers in thousands. Operating Profits
Exercise 15-40 (Algo) Segment Reporting (LO 15-5) Eastlawn Travel has two operating divisions, Tours and Resorts. The two divisions meet the requirements for segment disclosures. Before transactions between the two divisions are considered, revenues and costs are as follows: Revenues Costs Tours $ 35,400,000 19,900,000 Resorts $ 24,400,000 17,700,000 The two divisions have an arrangement by which Resorts gives coupons redeemable for tours and Tours gives discount coupons good for stays at a resort. The value of the coupons for the tours redeemed during the past year totaled $7.3 million. The discount coupons. redeemed at the resorts totaled $4.2 million. As of the end of the year, all coupons for the current year expired. Tours Resorts Required: What are the operating profits for each division considering the effects of the costs arising from the joint agreement? Note: Enter your answers in thousands. Operating Profits
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:Exercise 15-40 (Algo) Segment Reporting (LO 15-5)
Eastlawn Travel has two operating divisions, Tours and Resorts. The two divisions meet the requirements for segment disclosures.
Before transactions between the two divisions are considered, revenues and costs are as follows:
Revenues.
Costs
Tours
$ 35,400,000
19,900,000
The two divisions have an arrangement by which Resorts gives coupons redeemable for tours and Tours gives discount coupons good
for stays at a resort. The value of the coupons for the tours redeemed during the past year totaled $7.3 million. The discount coupons
redeemed at the resorts totaled $4.2 million. As of the end of the year, all coupons for the current year expired.
Tours
Resorts
Resorts
$ 24,400,000
17,700,000
Required:
What are the operating profits for each division considering the effects of the costs arising from the joint agreement?
Note: Enter your answers in thousands.
Operating Profits
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