Problem $8-11($Algo$)($LO $8-2)$

Chigua Company has seven operating segments, but only four $($One$,$ Two, Three, and Four$)$ are of significant size to warrant separate disclosure. As a whole, the segments generated revenues of $$1,150,000($$$863,000+$ $$287,000)$ from sales to outside customers. In addition, the segments had $$379,000$ in intersegment sales $($$$326,000+$ $$53,000).$

AccountsOutside SalesIntersegment SalesOne$ $296,000$$ $129,000$Two$219,00089,000$Three$179,00059,000$Four$169,00049,000$Totals$ $863,000$$ $326,000$Five$ $119,000$$ $21,000$Six$99,00011,000$Seven$69,00021,000$Totals$ $287,000$$ $53,000$

Which of the following statements is true?

Multiple Choice

A sufficient number of segments is being reported because those segments have $$1,189,000$ in total sales of a total of $$1,529,000$ for the company as a whole.

Not enough segments are being reported because those segments have $$863,000$ in outside sales of a total of $$1,150,000$ for the company as a whole.

A sufficient number of segments is being reported because those segments have $$863,000$ in outside sales of a total of $$1,150,000$ for the company as a whole.

Not enough segments are being reported because those segments have $$1,189,000$ in total revenues of a total of $$1,529,000$ for the company as a whole.