Parks Conglomerate Company does business in several different industries. The following is a 2013 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:

Required:

Prepare a schedule that reports on the revenues and profit of segments A and B and the other operating segments of Parks for 2013. 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.

Transcribed Image Text:

Sales Less: Cost of goods sold Depreciation expense Other operating expenses Total expenses Pretax income Income tax expense Net income Eamings per share (20,000 shares) $140,000 30,000 60,000 $300,000 230,000) $ 70,000 (21,000) $ 49,000 2.45 Sales Cost of goods sold Depreciation expense Other operating expenses Segment A 40% 35 40 42 Percent Identified with Segment B 46% 50 45 40 Other Segments 4556 14% 15 15 Sales Less: Cost of goods sold Depreciation expense Other operating expenses Total expenses Pretax income Income tax expense Net income Eamings per share (20,000 shares) $140,000 30,000 60,000 $300,000 230,000) $ 70,000 (21,000) $ 49,000 2.45 Sales Cost of goods sold Depreciation expense Other operating expenses Segment A 40% 35 40 42 Percent Identified with Segment B 46% 50 45 40 Other Segments 4556 14% 15 15

Answer rating: 100% (QA)

In the current scenario of PC Company bel... View the full answer