Prepare a report for CHIC’s management evaluating whether the operating segments disclosures prepared by CHIC’s accountants comply with ASC 280.

Question

Want to see more full solutions like this?

Answer 1

Question

Chapter 8, Problem 5DYS

a.

To determine

Prepare a report for CHIC’s management evaluating whether the operating segments disclosures prepared by CHIC’s accountants comply with ASC 280.

a.

Expert Solution

Explanation of Solution

Revenue test:

	Automobiles	Trucks	Helicopters	Ships

Sales to outside parties	$ 4,007,304	$ 3,796,432	$ 1,411,235	$ 1,003,809
Intersegment sales	$ 644,243	$ 307,982	—	—
Total revenue of segment	$ 4,651,547	$ 4,104,414	$ 1,411,235	$ 1,003,809

Table: (1)

Perform revenue test:

	Revenue	Percentage

Automobiles	$ 4,651,547	41.63%
Trucks	$ 4,104,414	36.74%
Helicopters	$ 1,411,235	12.63%
Ships	$ 1,003,809	8.99%
Total	$ 11,171,005	100%

Table: (2)

Segments with more than 10% of total revenues are automobiles, trucks, helicopters. Hence, these are the segments which are separately reportable.

Profit or loss test

	Automobiles	Trucks	Helicopters	Ships

Revenues from Outsiders	$ 4,007,304	$ 3,796,432	$ 1,411,235	$ 1,003,809
Intersegment Transfers	$ 644,243	$ 307,982	—	—
Total revenues	$ 4,651,547	$ 4,104,414	$ 1,411,235	$ 1,003,809
Less: Operating Expenses-external	$ 3,480,666	$ 3,147,086	$ 1,004,464	$ 958,743
Operating Expenses-internal	$ 289,589	$ 500,798	$ 57,893	$ 103,945
Total operating expenses	$ 3,770,255	$ 3,647,884	$ 1,062,357	$ 1,062,688
Segmented Profit (Loss)	$ 881,292	$ 456,530	$ 348,878	$ (58,879)

Table: (3)

Perform profit or loss test

	Profit	Loss	Percentage

Automobiles	$ 881,292		52.24%
Trucks	$ 456,530		27.06%
Helicopters	$ 348,878		20.68%
Ships		$ (58,879)	(3.49%)
Total	$ 1,686,700	$ (58,879)	100%

Table: (4)

Segments more than 10% of profits are reportable. Hence, segments automobiles, trucks, helicopters are reportable.

Asset Test

	Assets	Percentage
Automobiles	$ 3,987,776	39.90%
Trucks	$ 3,209,078	32.11%
Helicopters	$ 1,587,006	15.87%
Ships	$ 1,209,970	12.10%
Total	$ 9,993,830	100%

Table: (5)

All the segments are reportable in assets test as all are more than 10% of total assets.

The operating segment disclosures prepared by CHIC’s accountants does not comply with ASC 280 as segment helicopters is not reportable in any case according to accountants.

b.

To determine

Prepare a revised operating segments note to comply with ASC 280. CHIC does not have any unusual or extraordinary items, significant noncash items other than depreciation and amortization, or equity method affiliates.

b.

Expert Solution

Explanation of Solution

A revised operating segments note to comply with ASC 280

	Automobiles	Trucks	Helicopters	Others

Revenues	$ 4,651,547	$ 4,104,414	$ 1,411,235	$ 2,415,044
Segment profit (Loss)	$ 881,292	$ 456,530	$ 348,878	$ 289,999
Assets	$ 3,987,776	$ 3,209,078	$ 1,587,006	$ 2,796,976

Table: (6)

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Students have asked these similar questions

Net cash flow

GOI Inc. begins the year with inventory of $51,200 and ends the year with inventory of $44,300. The following table shows the amounts that were recorded during the year. Calculate the gross profit. Sales $ 9,00,000 Sales returns and allowances Sales discounts 6,700 15,000 Purchases 5,82,300 Operating expenses 2,12,000

Please need answer this financial accounting question

Answer 2

Question

Chapter 8, Problem 5DYS

a.

To determine

Prepare a report for CHIC’s management evaluating whether the operating segments disclosures prepared by CHIC’s accountants comply with ASC 280.

a.

Expert Solution

Explanation of Solution

Revenue test:

	Automobiles	Trucks	Helicopters	Ships

Sales to outside parties	$ 4,007,304	$ 3,796,432	$ 1,411,235	$ 1,003,809
Intersegment sales	$ 644,243	$ 307,982	—	—
Total revenue of segment	$ 4,651,547	$ 4,104,414	$ 1,411,235	$ 1,003,809

Table: (1)

Perform revenue test:

	Revenue	Percentage

Automobiles	$ 4,651,547	41.63%
Trucks	$ 4,104,414	36.74%
Helicopters	$ 1,411,235	12.63%
Ships	$ 1,003,809	8.99%
Total	$ 11,171,005	100%

Table: (2)

Segments with more than 10% of total revenues are automobiles, trucks, helicopters. Hence, these are the segments which are separately reportable.

Profit or loss test

	Automobiles	Trucks	Helicopters	Ships

Revenues from Outsiders	$ 4,007,304	$ 3,796,432	$ 1,411,235	$ 1,003,809
Intersegment Transfers	$ 644,243	$ 307,982	—	—
Total revenues	$ 4,651,547	$ 4,104,414	$ 1,411,235	$ 1,003,809
Less: Operating Expenses-external	$ 3,480,666	$ 3,147,086	$ 1,004,464	$ 958,743
Operating Expenses-internal	$ 289,589	$ 500,798	$ 57,893	$ 103,945
Total operating expenses	$ 3,770,255	$ 3,647,884	$ 1,062,357	$ 1,062,688
Segmented Profit (Loss)	$ 881,292	$ 456,530	$ 348,878	$ (58,879)

Table: (3)

Perform profit or loss test

	Profit	Loss	Percentage

Automobiles	$ 881,292		52.24%
Trucks	$ 456,530		27.06%
Helicopters	$ 348,878		20.68%
Ships		$ (58,879)	(3.49%)
Total	$ 1,686,700	$ (58,879)	100%

Table: (4)

Segments more than 10% of profits are reportable. Hence, segments automobiles, trucks, helicopters are reportable.

Asset Test

	Assets	Percentage
Automobiles	$ 3,987,776	39.90%
Trucks	$ 3,209,078	32.11%
Helicopters	$ 1,587,006	15.87%
Ships	$ 1,209,970	12.10%
Total	$ 9,993,830	100%

Table: (5)

All the segments are reportable in assets test as all are more than 10% of total assets.

The operating segment disclosures prepared by CHIC’s accountants does not comply with ASC 280 as segment helicopters is not reportable in any case according to accountants.

b.

To determine

Prepare a revised operating segments note to comply with ASC 280. CHIC does not have any unusual or extraordinary items, significant noncash items other than depreciation and amortization, or equity method affiliates.

b.

Expert Solution

Explanation of Solution

A revised operating segments note to comply with ASC 280

	Automobiles	Trucks	Helicopters	Others

Revenues	$ 4,651,547	$ 4,104,414	$ 1,411,235	$ 2,415,044
Segment profit (Loss)	$ 881,292	$ 456,530	$ 348,878	$ 289,999
Assets	$ 3,987,776	$ 3,209,078	$ 1,587,006	$ 2,796,976

Table: (6)

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Question

Chapter 8, Problem 5DYS

a.

To determine

Prepare a report for CHIC’s management evaluating whether the operating segments disclosures prepared by CHIC’s accountants comply with ASC 280.

a.

Expert Solution

Explanation of Solution

Revenue test:

	Automobiles	Trucks	Helicopters	Ships

Sales to outside parties	$ 4,007,304	$ 3,796,432	$ 1,411,235	$ 1,003,809
Intersegment sales	$ 644,243	$ 307,982	—	—
Total revenue of segment	$ 4,651,547	$ 4,104,414	$ 1,411,235	$ 1,003,809

Table: (1)

Perform revenue test:

	Revenue	Percentage

Automobiles	$ 4,651,547	41.63%
Trucks	$ 4,104,414	36.74%
Helicopters	$ 1,411,235	12.63%
Ships	$ 1,003,809	8.99%
Total	$ 11,171,005	100%

Table: (2)

Segments with more than 10% of total revenues are automobiles, trucks, helicopters. Hence, these are the segments which are separately reportable.

Profit or loss test

	Automobiles	Trucks	Helicopters	Ships

Revenues from Outsiders	$ 4,007,304	$ 3,796,432	$ 1,411,235	$ 1,003,809
Intersegment Transfers	$ 644,243	$ 307,982	—	—
Total revenues	$ 4,651,547	$ 4,104,414	$ 1,411,235	$ 1,003,809
Less: Operating Expenses-external	$ 3,480,666	$ 3,147,086	$ 1,004,464	$ 958,743
Operating Expenses-internal	$ 289,589	$ 500,798	$ 57,893	$ 103,945
Total operating expenses	$ 3,770,255	$ 3,647,884	$ 1,062,357	$ 1,062,688
Segmented Profit (Loss)	$ 881,292	$ 456,530	$ 348,878	$ (58,879)

Table: (3)

Perform profit or loss test

	Profit	Loss	Percentage

Automobiles	$ 881,292		52.24%
Trucks	$ 456,530		27.06%
Helicopters	$ 348,878		20.68%
Ships		$ (58,879)	(3.49%)
Total	$ 1,686,700	$ (58,879)	100%

Table: (4)

Segments more than 10% of profits are reportable. Hence, segments automobiles, trucks, helicopters are reportable.

Asset Test

	Assets	Percentage
Automobiles	$ 3,987,776	39.90%
Trucks	$ 3,209,078	32.11%
Helicopters	$ 1,587,006	15.87%
Ships	$ 1,209,970	12.10%
Total	$ 9,993,830	100%

Table: (5)

All the segments are reportable in assets test as all are more than 10% of total assets.

The operating segment disclosures prepared by CHIC’s accountants does not comply with ASC 280 as segment helicopters is not reportable in any case according to accountants.

b.

To determine

Prepare a revised operating segments note to comply with ASC 280. CHIC does not have any unusual or extraordinary items, significant noncash items other than depreciation and amortization, or equity method affiliates.

b.

Expert Solution

Explanation of Solution

A revised operating segments note to comply with ASC 280

	Automobiles	Trucks	Helicopters	Others

Revenues	$ 4,651,547	$ 4,104,414	$ 1,411,235	$ 2,415,044
Segment profit (Loss)	$ 881,292	$ 456,530	$ 348,878	$ 289,999
Assets	$ 3,987,776	$ 3,209,078	$ 1,587,006	$ 2,796,976

Table: (6)

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 8, Problem 5DYS

a.

To determine

Prepare a report for CHIC’s management evaluating whether the operating segments disclosures prepared by CHIC’s accountants comply with ASC 280.

a.

Expert Solution

Explanation of Solution

Revenue test:

	Automobiles	Trucks	Helicopters	Ships

Sales to outside parties	$ 4,007,304	$ 3,796,432	$ 1,411,235	$ 1,003,809
Intersegment sales	$ 644,243	$ 307,982	—	—
Total revenue of segment	$ 4,651,547	$ 4,104,414	$ 1,411,235	$ 1,003,809

Table: (1)

Perform revenue test:

	Revenue	Percentage

Automobiles	$ 4,651,547	41.63%
Trucks	$ 4,104,414	36.74%
Helicopters	$ 1,411,235	12.63%
Ships	$ 1,003,809	8.99%
Total	$ 11,171,005	100%

Table: (2)

Segments with more than 10% of total revenues are automobiles, trucks, helicopters. Hence, these are the segments which are separately reportable.

Profit or loss test

	Automobiles	Trucks	Helicopters	Ships

Revenues from Outsiders	$ 4,007,304	$ 3,796,432	$ 1,411,235	$ 1,003,809
Intersegment Transfers	$ 644,243	$ 307,982	—	—
Total revenues	$ 4,651,547	$ 4,104,414	$ 1,411,235	$ 1,003,809
Less: Operating Expenses-external	$ 3,480,666	$ 3,147,086	$ 1,004,464	$ 958,743
Operating Expenses-internal	$ 289,589	$ 500,798	$ 57,893	$ 103,945
Total operating expenses	$ 3,770,255	$ 3,647,884	$ 1,062,357	$ 1,062,688
Segmented Profit (Loss)	$ 881,292	$ 456,530	$ 348,878	$ (58,879)

Table: (3)

Perform profit or loss test

	Profit	Loss	Percentage

Automobiles	$ 881,292		52.24%
Trucks	$ 456,530		27.06%
Helicopters	$ 348,878		20.68%
Ships		$ (58,879)	(3.49%)
Total	$ 1,686,700	$ (58,879)	100%

Table: (4)

Segments more than 10% of profits are reportable. Hence, segments automobiles, trucks, helicopters are reportable.

Asset Test

	Assets	Percentage
Automobiles	$ 3,987,776	39.90%
Trucks	$ 3,209,078	32.11%
Helicopters	$ 1,587,006	15.87%
Ships	$ 1,209,970	12.10%
Total	$ 9,993,830	100%

Table: (5)

All the segments are reportable in assets test as all are more than 10% of total assets.

The operating segment disclosures prepared by CHIC’s accountants does not comply with ASC 280 as segment helicopters is not reportable in any case according to accountants.

b.

To determine

Prepare a revised operating segments note to comply with ASC 280. CHIC does not have any unusual or extraordinary items, significant noncash items other than depreciation and amortization, or equity method affiliates.

b.

Expert Solution

Explanation of Solution

A revised operating segments note to comply with ASC 280

	Automobiles	Trucks	Helicopters	Others

Revenues	$ 4,651,547	$ 4,104,414	$ 1,411,235	$ 2,415,044
Segment profit (Loss)	$ 881,292	$ 456,530	$ 348,878	$ 289,999
Assets	$ 3,987,776	$ 3,209,078	$ 1,587,006	$ 2,796,976

Table: (6)

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 8, Problem 5DYS

a.

To determine

Prepare a report for CHIC’s management evaluating whether the operating segments disclosures prepared by CHIC’s accountants comply with ASC 280.

a.

Expert Solution

Explanation of Solution

Revenue test:

	Automobiles	Trucks	Helicopters	Ships

Sales to outside parties	$ 4,007,304	$ 3,796,432	$ 1,411,235	$ 1,003,809
Intersegment sales	$ 644,243	$ 307,982	—	—
Total revenue of segment	$ 4,651,547	$ 4,104,414	$ 1,411,235	$ 1,003,809

Table: (1)

Perform revenue test:

	Revenue	Percentage

Automobiles	$ 4,651,547	41.63%
Trucks	$ 4,104,414	36.74%
Helicopters	$ 1,411,235	12.63%
Ships	$ 1,003,809	8.99%
Total	$ 11,171,005	100%

Table: (2)

Segments with more than 10% of total revenues are automobiles, trucks, helicopters. Hence, these are the segments which are separately reportable.

Profit or loss test

	Automobiles	Trucks	Helicopters	Ships

Revenues from Outsiders	$ 4,007,304	$ 3,796,432	$ 1,411,235	$ 1,003,809
Intersegment Transfers	$ 644,243	$ 307,982	—	—
Total revenues	$ 4,651,547	$ 4,104,414	$ 1,411,235	$ 1,003,809
Less: Operating Expenses-external	$ 3,480,666	$ 3,147,086	$ 1,004,464	$ 958,743
Operating Expenses-internal	$ 289,589	$ 500,798	$ 57,893	$ 103,945
Total operating expenses	$ 3,770,255	$ 3,647,884	$ 1,062,357	$ 1,062,688
Segmented Profit (Loss)	$ 881,292	$ 456,530	$ 348,878	$ (58,879)

Table: (3)

Perform profit or loss test

	Profit	Loss	Percentage

Automobiles	$ 881,292		52.24%
Trucks	$ 456,530		27.06%
Helicopters	$ 348,878		20.68%
Ships		$ (58,879)	(3.49%)
Total	$ 1,686,700	$ (58,879)	100%

Table: (4)

Segments more than 10% of profits are reportable. Hence, segments automobiles, trucks, helicopters are reportable.

Asset Test

	Assets	Percentage
Automobiles	$ 3,987,776	39.90%
Trucks	$ 3,209,078	32.11%
Helicopters	$ 1,587,006	15.87%
Ships	$ 1,209,970	12.10%
Total	$ 9,993,830	100%

Table: (5)

All the segments are reportable in assets test as all are more than 10% of total assets.

The operating segment disclosures prepared by CHIC’s accountants does not comply with ASC 280 as segment helicopters is not reportable in any case according to accountants.

b.

To determine

Prepare a revised operating segments note to comply with ASC 280. CHIC does not have any unusual or extraordinary items, significant noncash items other than depreciation and amortization, or equity method affiliates.

b.

Expert Solution

Explanation of Solution

A revised operating segments note to comply with ASC 280

	Automobiles	Trucks	Helicopters	Others

Revenues	$ 4,651,547	$ 4,104,414	$ 1,411,235	$ 2,415,044
Segment profit (Loss)	$ 881,292	$ 456,530	$ 348,878	$ 289,999
Assets	$ 3,987,776	$ 3,209,078	$ 1,587,006	$ 2,796,976

Table: (6)

Answer 6

Chapter 8, Problem 5DYS

a.

To determine

Prepare a report for CHIC’s management evaluating whether the operating segments disclosures prepared by CHIC’s accountants comply with ASC 280.

a.

Expert Solution

Explanation of Solution

Revenue test:

	Automobiles	Trucks	Helicopters	Ships

Sales to outside parties	$ 4,007,304	$ 3,796,432	$ 1,411,235	$ 1,003,809
Intersegment sales	$ 644,243	$ 307,982	—	—
Total revenue of segment	$ 4,651,547	$ 4,104,414	$ 1,411,235	$ 1,003,809

Table: (1)

Perform revenue test:

	Revenue	Percentage

Automobiles	$ 4,651,547	41.63%
Trucks	$ 4,104,414	36.74%
Helicopters	$ 1,411,235	12.63%
Ships	$ 1,003,809	8.99%
Total	$ 11,171,005	100%

Table: (2)

Segments with more than 10% of total revenues are automobiles, trucks, helicopters. Hence, these are the segments which are separately reportable.

Profit or loss test

	Automobiles	Trucks	Helicopters	Ships

Revenues from Outsiders	$ 4,007,304	$ 3,796,432	$ 1,411,235	$ 1,003,809
Intersegment Transfers	$ 644,243	$ 307,982	—	—
Total revenues	$ 4,651,547	$ 4,104,414	$ 1,411,235	$ 1,003,809
Less: Operating Expenses-external	$ 3,480,666	$ 3,147,086	$ 1,004,464	$ 958,743
Operating Expenses-internal	$ 289,589	$ 500,798	$ 57,893	$ 103,945
Total operating expenses	$ 3,770,255	$ 3,647,884	$ 1,062,357	$ 1,062,688
Segmented Profit (Loss)	$ 881,292	$ 456,530	$ 348,878	$ (58,879)

Table: (3)

Perform profit or loss test

	Profit	Loss	Percentage

Automobiles	$ 881,292		52.24%
Trucks	$ 456,530		27.06%
Helicopters	$ 348,878		20.68%
Ships		$ (58,879)	(3.49%)
Total	$ 1,686,700	$ (58,879)	100%

Table: (4)

Segments more than 10% of profits are reportable. Hence, segments automobiles, trucks, helicopters are reportable.

Asset Test

	Assets	Percentage
Automobiles	$ 3,987,776	39.90%
Trucks	$ 3,209,078	32.11%
Helicopters	$ 1,587,006	15.87%
Ships	$ 1,209,970	12.10%
Total	$ 9,993,830	100%

Table: (5)

All the segments are reportable in assets test as all are more than 10% of total assets.

The operating segment disclosures prepared by CHIC’s accountants does not comply with ASC 280 as segment helicopters is not reportable in any case according to accountants.

Answer 7

Chapter 8, Problem 5DYS

a.

To determine

Prepare a report for CHIC’s management evaluating whether the operating segments disclosures prepared by CHIC’s accountants comply with ASC 280.

Answer 8

a.

Expert Solution

Explanation of Solution

Revenue test:

	Automobiles	Trucks	Helicopters	Ships

Sales to outside parties	$ 4,007,304	$ 3,796,432	$ 1,411,235	$ 1,003,809
Intersegment sales	$ 644,243	$ 307,982	—	—
Total revenue of segment	$ 4,651,547	$ 4,104,414	$ 1,411,235	$ 1,003,809

Table: (1)

Perform revenue test:

	Revenue	Percentage

Automobiles	$ 4,651,547	41.63%
Trucks	$ 4,104,414	36.74%
Helicopters	$ 1,411,235	12.63%
Ships	$ 1,003,809	8.99%
Total	$ 11,171,005	100%

Table: (2)

Segments with more than 10% of total revenues are automobiles, trucks, helicopters. Hence, these are the segments which are separately reportable.

Profit or loss test

	Automobiles	Trucks	Helicopters	Ships

Revenues from Outsiders	$ 4,007,304	$ 3,796,432	$ 1,411,235	$ 1,003,809
Intersegment Transfers	$ 644,243	$ 307,982	—	—
Total revenues	$ 4,651,547	$ 4,104,414	$ 1,411,235	$ 1,003,809
Less: Operating Expenses-external	$ 3,480,666	$ 3,147,086	$ 1,004,464	$ 958,743
Operating Expenses-internal	$ 289,589	$ 500,798	$ 57,893	$ 103,945
Total operating expenses	$ 3,770,255	$ 3,647,884	$ 1,062,357	$ 1,062,688
Segmented Profit (Loss)	$ 881,292	$ 456,530	$ 348,878	$ (58,879)

Table: (3)

Perform profit or loss test

	Profit	Loss	Percentage

Automobiles	$ 881,292		52.24%
Trucks	$ 456,530		27.06%
Helicopters	$ 348,878		20.68%
Ships		$ (58,879)	(3.49%)
Total	$ 1,686,700	$ (58,879)	100%

Table: (4)

Segments more than 10% of profits are reportable. Hence, segments automobiles, trucks, helicopters are reportable.

Asset Test

	Assets	Percentage
Automobiles	$ 3,987,776	39.90%
Trucks	$ 3,209,078	32.11%
Helicopters	$ 1,587,006	15.87%
Ships	$ 1,209,970	12.10%
Total	$ 9,993,830	100%

Table: (5)

All the segments are reportable in assets test as all are more than 10% of total assets.

The operating segment disclosures prepared by CHIC’s accountants does not comply with ASC 280 as segment helicopters is not reportable in any case according to accountants.

Answer 9

a.

Expert Solution

Answer 10

a.

Expert Solution

Answer 11

Expert Solution

Answer 12

b.

To determine

Prepare a revised operating segments note to comply with ASC 280. CHIC does not have any unusual or extraordinary items, significant noncash items other than depreciation and amortization, or equity method affiliates.

b.

Expert Solution

Explanation of Solution

A revised operating segments note to comply with ASC 280

	Automobiles	Trucks	Helicopters	Others

Revenues	$ 4,651,547	$ 4,104,414	$ 1,411,235	$ 2,415,044
Segment profit (Loss)	$ 881,292	$ 456,530	$ 348,878	$ 289,999
Assets	$ 3,987,776	$ 3,209,078	$ 1,587,006	$ 2,796,976

Table: (6)

Answer 13

b.

To determine

Prepare a revised operating segments note to comply with ASC 280. CHIC does not have any unusual or extraordinary items, significant noncash items other than depreciation and amortization, or equity method affiliates.

Answer 14

b.

Expert Solution

Explanation of Solution

A revised operating segments note to comply with ASC 280

	Automobiles	Trucks	Helicopters	Others

Revenues	$ 4,651,547	$ 4,104,414	$ 1,411,235	$ 2,415,044
Segment profit (Loss)	$ 881,292	$ 456,530	$ 348,878	$ 289,999
Assets	$ 3,987,776	$ 3,209,078	$ 1,587,006	$ 2,796,976