Segments Green Blue Black White Red Pink Sales to outside parties... Intersegment revenues Salary expense Rent expense. Interest expense Income tax expense (savings). $812 91 379 $1,811 $514 109 402 81 82 $309 -0- $121 $99 302 62 16 16 614 166 65 312 92 49 317 42 14 139 31 59 141 87 61 (86) (64) -0- Red $1,074 449 140 Pink .... Black.... $(94) (222) 308 Blue..... Green White....

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Following is financial information describing the six operating segments that make up Fairfield, Inc. (in thousands):
Consider the following questions independently. None of the six segments has a primarily financial nature.
a. What minimum revenue amount must any one segment generate to be of significant size to require disaggregated disclosure?
b. If only Red, Blue, and Green necessitate separate disclosure, is Fairfield disclosing disaggre­gated data for enough segments?
c. What volume of revenues must a single customer generate to necessitate disclosing the exis­tence of a major customer?
d. If each of these six segments has a profit or loss (in thousands) as follows, which warrants sepa­rate disclosure?

Segments
Green
Blue
Black
White
Red
Pink
Sales to outside parties...
Intersegment revenues
Salary expense
Rent expense.
Interest expense
Income tax expense
(savings).
$812
91
379
$1,811
$514
109
402
81
82
$309
-0-
$121
$99
302
62
16
16
614
166
65
312
92
49
317
42
14
139
31
59
141
87
61
(86)
(64)
-0-
Transcribed Image Text:Segments Green Blue Black White Red Pink Sales to outside parties... Intersegment revenues Salary expense Rent expense. Interest expense Income tax expense (savings). $812 91 379 $1,811 $514 109 402 81 82 $309 -0- $121 $99 302 62 16 16 614 166 65 312 92 49 317 42 14 139 31 59 141 87 61 (86) (64) -0-
Red
$1,074
449
140
Pink ....
Black....
$(94)
(222)
308
Blue.....
Green
White....
Transcribed Image Text:Red $1,074 449 140 Pink .... Black.... $(94) (222) 308 Blue..... Green White....
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