Introduction:
Segment Reporting:
The reporting policy of the company based on the business or operating segment or geographical coverage of the business is called segment reporting.
Business segment provides information related to individual products and services or group of products and services that are different from other business segments. Geographical segment provides information related to products or services within a particular economic environment that are different from other geographical area.
Segment reporting helps in better understanding of the company, better assessment of risks and returns and enables good comparability that helps in taking appropriate decisions by the management.
Requirement-1:
To identify:
The seven business segments operated by HP from its annual report for the fiscal year ended 2015.
Requirement-2a:
To identify:
The operating segment of HP that had the largest dollar amount of operating income during the fiscal year 2015.
Requirement-2b:
To identify:
The operating segment of HP that had the largest amount of assets during the fiscal year 2015.
Requirement-3a:
To compute:
The return on assets for each business segments for the fiscal year 2015 using the operating income and segment total assets.
Requirement-3b:
To discuss:
The highest return on assets of HP for the fiscal year ended 2015 to measure the profitability of the segment in relation to its total assets.
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Chapter 7 Solutions
Connect Access Card for Fundamental Accounting Principles
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- On July 1, 2022, Burrough Company acquired 136,000 of the outstanding shares of Carter Company for $15 per share. This acquisition gave Burrough a 25 percent ownership of Carter and allowed Burrough to significantly influence the investee's decisions. As of July 1, 2022, the investee had assets with a book value of $7 million and liabilities of $456,800. At the time, Carter held equipment appraised at $319,200 more than book value; it was considered to have a seven-year remaining life with no salvage value. Carter also held a copyright with a five-year remaining life on its books that was undervalued by $980,000. Any remaining excess cost was attributable to an indefinite-lived trademark. Depreciation and amortization are computed using the straight-line method. Burrough applies the equity method for its investment in Carter. Carter's policy is to declare and pay a $1 per share cash dividend every April 1 and October 1. Carter's income, earned evenly throughout each year, was $579,000…arrow_forwardGeneral Accountarrow_forwardPlease solve this general accounting issuearrow_forward
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