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 Company Total Sales to outside parties $ 1,678 Books $ 168 Intersegment sales 517 36 Computers $ 732 276 Maps $ 440 51 Travel Finance $ 338 154 $ 0 0 Interest income-external 121 72 0 0 0 49 Interest income-intersegment loans 159 0 0 0 0 159 Assets 3,623 242 1,439 284 358 1,300 Operating expenses 1,517 127 854 289 202 45 Expenses-intersegment sales 246 82 63 43 58 0 Interest expense-external 119 0 0 0 0 119 Interest expense-intersegment loans 195 33 83 50 29 0 Income tax expense (savings) 105 48 (29) 63 67 (44) General corporate expenses 91 Unallocated operating costs 116 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.

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 Company Total Sales to outside parties $ 1,678 Books $ 168 Intersegment sales 517 36 Computers $ 732 276 Maps $ 440 51 Travel Finance $ 338 154 $ 0 0 Interest income-external 121 72 0 0 0 49 Interest income-intersegment loans 159 0 0 0 0 159 Assets 3,623 242 1,439 284 358 1,300 Operating expenses 1,517 127 854 289 202 45 Expenses-intersegment sales 246 82 63 43 58 0 Interest expense-external 119 0 0 0 0 119 Interest expense-intersegment loans 195 33 83 50 29 0 Income tax expense (savings) 105 48 (29) 63 67 (44) General corporate expenses 91 Unallocated operating costs 116 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.

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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