Chevalier Company has identified five industry segments: plastics, metals, lumber, paper, and finance.

It appropriately consolidated each of these segments in producing its annual financial statements. Information describing each segment $($in thousands$)$ follows:

Accounts Plastics Metals Lumber Paper Finance

Sales to outside parties $ $6,370$ $ $2,169$ $ $646$ $ $357$ $ $0$

Intersegment sales $1131361011130$

Interest income from outside parties $0218029$

Interest income from intersegment loans $0000164$

Operating expenses $3,9541,63293658918$

Interest expense $6318533089$

Tangible assets $1,3163,011339586114$

Intangible assets $743660500$

Intersegment loans $($debt$)0000669$

Chevalier does not allocate its $$1,260,000$ in common expenses to the various segments.

 

 

Required:

a$1.$ Perform revenue test procedure to determine Chevalier$$s reportable operating segments.

a$2.$ Perform profit or loss test procedure to determine Chevalier$$s reportable operating segments.

a$3.$ Perform asset test procedure to determine Chevalier$$s reportable operating segments.

Answer rating: 100% (QA)

Answer To determine Chevalier Companys reportable operating segments using the revenue profit or loss and asset tests we need to analyze the informati... View the full answer