SavedHeChevalier 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 eachsegment (in thousands) follows:AccountsSales to outside partiesIntersegment salesInterest income from outside partiesInterest income from intersegment loansOperating expensesInterest expenseTangible assetsIntangible assetsIntersegment loans (debt)Plastics$ 6,625Metals$ 2,334Lumber$ 701Paper$ 412Finance146169134146$ 000321904000001974,174741,7421,046644292964301001,4678503,1765047511693990061000702Chevalier 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 asset test procedure to determine Chevalier's reportable operating segments.Complete this question by entering your answers in the tabs below.Prev 1 of 480600 Q G & CANext >DUGADAI

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Answered: Saved He Chevalier Company has…

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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Umbrella Company and its divisions are engaged solely in manufacturing operations . The following data pertain to the industries in which operations were conducted for the year ended December 31, 2014: Revenue From Revenue Operating Identifiable Segments outsiders from within Profit Assets A 18,000,000 2,000,000 3,600,000 40,000,000 B 13,000,000 3,000,000 2,800.000 36,000,000 C 5,000,000 7,000,000 1,500,000 2,400,000 1,200,000 28,000,000 16,000,000 D 4,500,000 E 5,400,000 3,600,000 1,400,000 14,000,000 6,000,000 140,000,000 F 3,000,000 600,000 Total 48,900,000 17,100,000 12,000,000 In its segment information for 2014, how many reportable segments does Umbrella Company have?
Lasky Manufacturing has two divisions: Carolinas and Northeast. Lasky has a cost of capital of 7.5 percent. Selected financial information (in thousands of dollars) for the first year of business follows: Sales revenue Income Divisional assets (beginning of year) Current liabilities (beginning of year) RAD expenditures Carolinas $1,600 160 1,000 240 800 Northeast $5,500 Complete this question by entering your answers in the tabs below. 432 1,500 240 720 R&D is assumed to benefit two periods. All R&D is spent at the beginning of the year. Required: a-1. Evaluate the performance of the two divisions assuming Lasky Manufacturing uses economic value added (EVA). a-2. Which division had the better performance?
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.
State and explain the 3 main elements of regulatory framework in accounting standards
White has a reportable segment if the segment's revenue will total to what amount? The following information pertains to the White Company and its divisions for the year ended December 31, 2014: Sales to unaffiliated customers P10,000,000 Inter-segment sales of products similar to those sold to unaffiliated customers 2,000,000 White Company and all of its divisions are engaged solely in manufɛcturing operations. Your answer
Three major segments of the transportation industry are motor carriers such as Atlantic Worldwide, railroads such as Pacific, and transportation logistics services such as Mediterranean. Recent financial statement information for these three companies follows (in thousands): Atlantic Pacific Mediterranean Sales $2,327,940 $899,990 $2,245,320 Average total assets 862,200 1,285,700 534,600 a. Determine the asset turnover for all three companies. Round your answers to two decimal places. Atlantic Pacific Mediterranean b. The ratio of sales to assets measures the number of sales dollars earned for each dollar of assets. The greater the number of sales dollars earned for every dollar of assets, the - efficient a firm is in using assets.
Presented below is the income statement of Debra, Inc.: Sales revenue $380,000 Cost of goods sold 222,000 Gross profit $158,000 Operating expenses 94,100 Income before income taxes 63,900 Income taxes 22,900 Net income $ 41,000 In addition, the following information related to net changes in working capital is presented: Debit Credit Cash $11,800 Accounts receivable 24,300 Inventories $19,700 Salaries payable (operating expenses) 8,400 Accounts payable 14,100 Income taxes payable 3,100 The company also indicates that depreciation expense for the year was $16,700 and that the deferred tax liability account increased $2,900. Prepare a schedule computing the net cash flow from operating activities that would be shown on a statement of cash flows: (a) using the indirect method. (b) using the direct method.
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