Problem 8-35 (Algo) (LO 8-2) Ecru Company has identified five industry segments: plastics, metals, lumber, paper, and finance. It appropriately consolidated each of these segments in producing its annual financial statements. Information describing each segment (in thousands) follows: Sales to outside parties Intersegment transfers Interest income from outside parties Interest income from intersegment loans Operating expenses Interest expense Tangible assets Intangible assets. Intersegment loans (debt) Plastics Metals $6,770 $2,369 153 176 37 0 a. Revenue test: b. Profit or loss test: c. Asset test: 0 0 4,274 79 1,517 90 0 1,792 34 3,211 406 0 Lumber $ 726 141 24 0 1,096 69 539 0 0 Ecru does not allocate its $1,340,000 in common expenses to the various segments. Perform testing procedures to determine Ecru's reportable operating segments. Paper $ 437 153 0 0 669 22 786 66 0 Finance $ 0 0 45 204 34 105 194 0 709
Problem 8-35 (Algo) (LO 8-2) Ecru Company has identified five industry segments: plastics, metals, lumber, paper, and finance. It appropriately consolidated each of these segments in producing its annual financial statements. Information describing each segment (in thousands) follows: Sales to outside parties Intersegment transfers Interest income from outside parties Interest income from intersegment loans Operating expenses Interest expense Tangible assets Intangible assets. Intersegment loans (debt) Plastics Metals $6,770 $2,369 153 176 37 0 a. Revenue test: b. Profit or loss test: c. Asset test: 0 0 4,274 79 1,517 90 0 1,792 34 3,211 406 0 Lumber $ 726 141 24 0 1,096 69 539 0 0 Ecru does not allocate its $1,340,000 in common expenses to the various segments. Perform testing procedures to determine Ecru's reportable operating segments. Paper $ 437 153 0 0 669 22 786 66 0 Finance $ 0 0 45 204 34 105 194 0 709
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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
Transcribed Image Text:Problem 8-35 (Algo) (LO 8-2)
Ecru Company has identified five industry segments: plastics, metals, lumber, paper, and finance.
It appropriately consolidated each of these segments in producing its annual financial statements. Information describing each
segment (in thousands) follows:
Sales to outside parties
Intersegment transfers
Interest income from outside parties
Interest income from intersegment loans
Operating expenses
Interest expense
Tangible assets
Intangible assets
Intersegment loans (debt)
0
Plastics Metals
$6,770 $2,369
153
176
37
0
1,792
34
3,211
406
0
4,274
79
1,517
90
0
0
a. Revenue test:
b. Profit or loss test:
c. Asset test:
Lumber
$ 726
141
24
0
1,096
69
539
0
0
Ecru does not allocate its $1,340,000 in common expenses to the various segments.
Perform testing procedures to determine Ecru's reportable operating segments.
Paper
$437
153
0
0
669
22
786
66
0
Finance
$0
0
45
204
34
105
194
0
709
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