Ecru Company has identified five industry segments: plastics, metals, lumber, paper, and finance. It appropriately consolidated...

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Ecru 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: Sales to outside parties Intersegment transfers Interest income from outside parties Interest income from intersegment loans Operating expenses Interest expense Tangible assets Intangible assets Intersegment loans (debt) Plastics $ 6,720 153 a. Revenue test: b. Profit or loss test: c. Asset test: 0 0 4,234 77 1,511 88 0 Metals $ 2,364 175 35 0 1,772 32 3,206 405 Lumber Paper $ 716 140 $ 427 152 22 0 0 0 659 27 781 64 0 1,076 67 534 0 Ecru does not allocate its $1,450,000 in common expenses to the various segments. Perform testing procedures to determine Ecru's reportable operating segments. Finance $ 0 0 43 203 32 103 184 0 708 Ecru 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: Sales to outside parties Intersegment transfers Interest income from outside parties Interest income from intersegment loans Operating expenses Interest expense Tangible assets Intangible assets Intersegment loans (debt) Plastics $ 6,720 153 a. Revenue test: b. Profit or loss test: c. Asset test: 0 0 4,234 77 1,511 88 0 Metals $ 2,364 175 35 0 1,772 32 3,206 405 Lumber Paper $ 716 140 $ 427 152 22 0 0 0 659 27 781 64 0 1,076 67 534 0 Ecru does not allocate its $1,450,000 in common expenses to the various segments. Perform testing procedures to determine Ecru's reportable operating segments. Finance $ 0 0 43 203 32 103 184 0 708

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To determine Ecru Companys reportable operating segments we can perform three testing procedures the revenue test the profit or loss test and the asse... View the full answer