Parks Conglomerate Company does business in several different industries The
Parks Conglomerate Company does business in several different industries. The following is a 2016 condensed income statement for the entire company:
Parks has two major operating segments, A and B. No other operating segment contributes 10% or more of the company’s activities. Segments A and B make no sales to each other or to the other segments of the company. An analysis reveals that $2,000 of the total depreciation expense and $6,000 of the total other operating expenses are related to general corporate activities. The remaining expenses and total revenues are directly allocable to segment activities according to the following percentages:
Prepare a schedule that reports on the revenues and profit of Segments A and B and the other operating segments of Parks for 2016. Be sure to reconcile these amounts with the related totals on the preceding income statement. Include notes summarizing the depreciation related to each operating segment and the computation of segment profits.
Membership TRY NOW
  • Access to 800,000+ Textbook Solutions
  • Ask any question from 24/7 available
  • Live Video Consultation with Tutors
  • 50,000+ Answers by Tutors
Relevant Tutors available to help