Perth Corporation has two operating divisions, a casino and a hotel. The two divisions meet the requirements for segment disclosures.Before transactions between the two divisions are considered, revenues and costs are as follows:RevenuesCostsCasino$31,000,00018,000,000Hotel$24,000,00012,000,000esThe casino and the hotel have a joint marketing arrangement by which the hotel gives coupons redeemable at casino slot machinesand the casino gives discount coupons good for stays at the hotel. The value of the coupons for the slot machines redeemed duringthe past year totaled $6,000,000. The discount coupons redeemed at the hotel totaled $1,000,000. As of the end of the year, allcoupons for the current year expired.Required:What are the operating profits for each division considering the effects of the costs arising from the joint marketing agreement? (Enteryour answers in thousands.)CasinoHotelOperatingProfits4

To calculate the operating profits for each division considering the effects of the costs arising…

Answered: Perth Corporation has two operating…

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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Exercise 15-37 (Algo) Segment Reporting (LO 15-5) Perth Corporation has two operating divisions, a casino and a hotel. The two divisions meet the requirements for segment disclosures. Before transactions between the two divisions are considered, revenues and costs are as follows: casino $34,000, 000 e 17,000, 000 Hotel $27,000,000 14,000,000 Revenues The casino and the hotel have a joint marketing arrangement by which the hotel gives coupons redeemable at casino slot machines and the casino gives discount coupons good for stays at the hotel. The value of the coupons for the slot machines redeemed during the past year totaled $6,000,000. The discount coupons redeemed at the hotel totaled $1,000,000. As of the end of the year, all coupons for the current year expired. Required: What are the operating profits for each division considering the effects of the costs arising from the Joint marketing agreement? (Enter your answers In thousands.)
Three major transportation segments and a major company within each segment are as follows: Segment Company Railroads Company R, Inc. (CORI) Motor carriers Company M, Inc. (COMI) Transportation Arrangement Company T, Inc. (COTI) Company R Company M Company T Sales $5,070,961 $3,748,940 $3,487,549 Average long-term operating assets 1,370,530 720,950 591,110 a. Determine the asset turnover for all three companies. Round to one decimal place. Company R fill in the blank 1 Company M fill in the blank 2 Company T fill in the blank 3 Do not give solution in image
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The Global Products Corporation has three subsidiaries. Sales Net income (after taxes) Assets Medical Supplies Heavy Machinery Electronics a-1. What is the return on sales for each subsidiary? Note: Input your answers as a percent rounded to 2 decimal places. O Medical Supplies O Electronics Medical Supplies Heavy Machinery $ 20,590,000 $5,140,000 1,830,000 19,900,000 a-2. Which subsidiary has the lowest return on sales? Heavy Machinery Return on Sales % % % Medical Supplies Heavy Machinery Electronics 697,000 8,450,000 b-1. What is the return on assets for each subsidiary? Note: Input your answers as a percent rounded to 2 decimal places. Return on Assets % % % Electronics $ 4,190,000 364,000 3,860,000
On January 1, 20X1, Himalaya Corporation organized Alps Company as a subsidiary in Switzerland with an initial investment cost of Swiss francs (SFr) 120,000. Alps's December 31, 20X1, trial balance in SFr is as follows: Debit (SFr) Credit(SFr) Cash 14000 Accounts Receivable 40000 Receivable from Himalaya 10000 Inventory 50000 Plant and Equipment 200000 Accumulated Depreciation 20000 Accounts Payable 24000 Bonds Payable 100000 Common Stock 120000 Sales 300000 Cost of goods sold 140000 Depreciation Expense 20000 Operating Expense 60000 Dividend paid 30000 Total SFr564,000 SFr 564,000 Additional Information The receivable from Himalaya is denominated in Swiss francs. Himalaya's books show a $8,000 payable to Alps. Purchases of inventory goods are made evenly during the year. Items in the ending inventory were purchased…
A recent accounting graduate from Divine Word University evaluated the operating performance of Boswell Company's four divisions. The following presentation was made to Boswell's Board of Directors. During the presentation, the accountant made the recommendation to eliminate the Southern Division stating that total net income would increase by P40,000. (See analysis below.) Other Three Divisions Southern Division Total Sales P2,000,000 P480,000 P2,480,000 Cost of Goods Sold 950,000 400,000 1,350,000 Gross Profit…
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 $ 35,290,000 19,845,000 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 $6.2 million. The discount coupons redeemed at the resorts totaled $3.1 million. As of the end of the year, all coupons for the current year expired. Tours Resorts Resorts $ 24,290,000 17,645,000 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
Giardin Outdoors is a recreational goods retailer with two divisions: Online and Stores. The two divisions both use the services of the corporate Finance and Accounting (F and A) Department. Annual costs of the F and A Department total $5.215 million a year. Managers in the two operating divisions are measured based on division operating profits. The following selected data are available for the two operating divisions: Online Stores Revenues ($000) Fixed Variable Total $ 74,700 40,500 Required: Determine the cost allocation if $3.815 million of the F and A costs are fixed and allocated on the basis of revenues, and the remaining costs, which are variable, are allocated on the basis of transactions. Note: Do not round intermediate calculations. Round your final answers to the nearest whole dollar. Transactions_ (000) 1,216.5 358.5 Online Stores
Waterway Company is involved in four separate industries. The following information is available for each of the four industries Operating Segment w X Total Revenue $56,202 9,680 24,225 6,793 $96,900 Operating Profit (Loss) $16,000 2,480 (3,130) 1,150 $16,500 Identifiable Assets $172,434 86,217 20,811 17,838 $297,300 Y Z 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.
Required: The following data pertain to three divisions of Nevada Aggregates, Incorporated. The company's required rate of return on invested capital is 10 percent. Note: Round "Capital turnover" answers to 2 decimal places.
Subject:
Gravity Services Ltd (GS) is a company set up in Hong Kong providing the region with cloud computingservices like servers, storage, networking and software, to help customers to meet their business challenges. During the year ended 30 September 2020, it enters into two contracts.(i) Data Tab Ltd (DT) enters into a contract with GS for the use of an identified server for three years.GS delivers and installs the server at DT’s premises in accordance with DT’s instructions, and provides repair and maintenance services for the server, as needed, throughout the period of use. GSsubstitutes the server only in the case of malfunction. DT can decide which data to be stored and howto integrate the server to its operation. DT can change its decisions on how to operate the serversthroughout the period of use (a) advise GS whether the contract (i) falls within HKFRS 16 as a lease.

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