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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The following information applies to the questions displayed below.]Simon Company's year-end balance sheets follow. At December 31 Current Year 1 Year Ago 2 Years Ago Assets Cash $ 32,700 $ 37,849 $ 37,130 Accounts receivable, net 94,775 65,580 51,527 Merchandise inventory 120,330 86,659 53,800 Prepaid expenses 10,118 10,034 4,252 Plant assets, net 285,450 268,303 235,991 Total assets $ 543,373 $ 468,425 $ 382,700 Liabilities and Equity Accounts payable $ 138,006 $ 78,372 $ 51,022 Long-term notes payable 100,111 107,738 83,731 Common stock, $10 par value 163,500 163,500 162,500 Retained earnings 141,756 118,815 85,447 Total liabilities and equity $ 543,373 $ 468,425 $ 382,700 The company’s income statements for the current year and 1 year ago, follow. For Year Ended December 31 Current Year 1 Year Ago Sales $ 706,385 $ 557,426 Cost of goods sold $ 430,895 $ 362,327 Other operating expenses 218,979 141,029 Interest…
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Saved He Chevalier Company has identified five industry segments: plastics, metals, lumber, paper, and finance. t 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 $ 6,625 Metals $ 2,334 Lumber $ 701 Paper $ 412 Finance 146 169 134 146 $ 0 0 0 32 19 0 40 0 0 0 0 197 4,174 74 1,742 1,046 644 29 29 64 30 100 1,467 85 0 3,176 504 751 169 399 0 0 61 0 0 0 702 Chevalier does not allocate its $1,480,000 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…
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