Ecru Company has identified five industry segments: plastics, metals, lumber, paper, and finance. It appropriately consolidated each
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Question:
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:
Plastics | Metals | Lumber | Paper | Finance | |||||||||||||||
Sales to outside parties | $ | 6,770 | $ | 2,384 | $ | 726 | $ | 437 | $ | 0 | |||||||||
Intersegment transfers | 156 | 179 | 144 | 156 | 0 | ||||||||||||||
Interest income from outside parties | 0 | 37 | 24 | 0 | 45 | ||||||||||||||
Interest income from intersegment loans | 0 | 0 | 0 | 0 | 207 | ||||||||||||||
Operating expenses | 4,274 | 1,792 | 1,096 | 669 | 34 | ||||||||||||||
Interest expense | 79 | 34 | 69 | 25 | 105 | ||||||||||||||
Tangible assets | 1,516 | 3,226 | 554 | 801 | 194 | ||||||||||||||
Intangible assets | 90 | 409 | 0 | 66 | 0 | ||||||||||||||
Intersegment loans (debt) | 0 | 0 | 0 | 0 | 712 | ||||||||||||||
Ecru does not allocate its $1,430,000 in common expenses to the various segments.
Perform testing procedures to determine Ecru’s reportable operating segments.
Revenue test
Segment | Revenues | Percentage | Reported or Not Reported |
Plastic | |||
Metals | |||
Lumber | |||
Paper | |||
Finance | |||
Total |
Related Book For
Fundamental financial accounting concepts
ISBN: 978-0078025365
8th edition
Authors: Thomas P. Edmonds, Frances M. Mcnair, Philip R. Olds, Edward
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