Oroblanco Company has prepared consolidated financial statements for the current year and is now gathering information in connection with the following five operating segments it has identified. (Figures are in thousands.) Accounts Sales to outside parties. Intersegment sales Interest income-external Interest income-intersegment loans Assets Operating expenses Expenses-intersegment sales Interest expense-external Interest expense-intersegment loans Income tax expense (savings) General corporate expenses Unallocated operating costs Revenue Test Company Total $ 1,735 Profit or Loss Test Books Computers Maps Travel Finance Total Asset Test 551 135 167 3,728 1,580 255 127 227 141 105 130 Required: a1. Determine the reportable segments by performing revenue test. a2. Determine the reportable segments by performing profit or loss test. a3. Determine the reportable segments by performing asset test. < Revenue Test Books $ 189 Complete this question by entering your answers in the tabs below. Determine the reportable segments by performing profit or loss test. Note: Enter your answers in thousands of dollars. Segment Revenues Expenses Profit Loss 44 78 0 256 135 90 e 41 62 Computers $ 756 280 Reported or Not Reported 0 0 1,481 868 71 Asset Test > 0 91 (21) Maps $ 446 59 0 0 298 314 28 0 58 77 Travel Finance $ 344 168 0 0 353 210 66 0 37 81 $0 0 57 167 1,340 53 0 127 e (58)
Oroblanco Company has prepared consolidated financial statements for the current year and is now gathering information in connection with the following five operating segments it has identified. (Figures are in thousands.) Accounts Sales to outside parties. Intersegment sales Interest income-external Interest income-intersegment loans Assets Operating expenses Expenses-intersegment sales Interest expense-external Interest expense-intersegment loans Income tax expense (savings) General corporate expenses Unallocated operating costs Revenue Test Company Total $ 1,735 Profit or Loss Test Books Computers Maps Travel Finance Total Asset Test 551 135 167 3,728 1,580 255 127 227 141 105 130 Required: a1. Determine the reportable segments by performing revenue test. a2. Determine the reportable segments by performing profit or loss test. a3. Determine the reportable segments by performing asset test. < Revenue Test Books $ 189 Complete this question by entering your answers in the tabs below. Determine the reportable segments by performing profit or loss test. Note: Enter your answers in thousands of dollars. Segment Revenues Expenses Profit Loss 44 78 0 256 135 90 e 41 62 Computers $ 756 280 Reported or Not Reported 0 0 1,481 868 71 Asset Test > 0 91 (21) Maps $ 446 59 0 0 298 314 28 0 58 77 Travel Finance $ 344 168 0 0 353 210 66 0 37 81 $0 0 57 167 1,340 53 0 127 e (58)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Vaibh
Transcribed Image Text:Oroblanco Company has prepared consolidated financial statements for the current year and is now gathering information in
connection with the following five operating segments it has identified. (Figures are in thousands.)
Accounts
Sales to outside parties
Intersegment sales
Interest income-external
Interest income-intersegment loans
Assets
Operating expenses
Expenses-intersegment sales
Interest expense-external
Interest expense-intersegment loans
Income tax expense (savings)
General corporate expenses
Unallocated operating costs
Revenue Test Profit or Loss
Test
Company Total
$ 1,735
551
135
167
3,728
1,580
Asset Test
Books
Computers
Maps
Travel
Finance
Total
255
127
227
141
105
130
Required:
a1. Determine the reportable segments by performing revenue test.
a2. Determine the reportable segments by performing profit or loss test.
a3. Determine the reportable segments by performing asset test.
Books
$ 189
44
78
0
Complete this question by entering your answers in the tabs below.
< Revenue Test
Determine the reportable segments by performing profit or loss test.
Note: Enter your answers in thousands of dollars.
Segment Revenues Expenses Profit Loss
256
135
90
0
41
62
Computers
$ 756
280
Reported or Not
Reported
8
8
1,481
868
71
8
91
(21)
Asset Test >
Maps
$ 446
59
0
0
298
314
28
58
77
Travel Finance
$ 344
168
0
8
353
210
66
0
37
81
$0
0
57
167
1,340
53
0
127
0
(58)
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Step 1: Define Operating Segment
VIEWStep 2: Calculation of total revenue
VIEWStep 3: Determining the reportable segment by revenue test
VIEWStep 4: Calculation of total expenses
VIEWStep 5: Determining the reportable segment by Profit or Loss test
VIEWStep 6: Determining the reportable segment by Asset test
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