Problem V Segment Reporting. (14 points)

Baden Company is a diversified company which has developed the following information about its five segments:

SEGMENTS

A B C D E

Total sales $ 800,000 $1,700,000 $ 300,000 $ 320,000 $ 580,000

Operating profit (loss) (270,000) 480,000 40,000 (300,000) (10,000)

Identifiable assets 2,600,000 5,800,000 1,200,000 3,900,000 5,600,000

Instructions

Identify which segments are significant enough to warrant disclosure in accordance with FASB No. 131, "Reporting Disaggregated Information about a Business Enterprise," by applying the following quantitative tests:

a. Revenue test

b. Operating profit or loss test

c. Identifiable assets test

Problem V
(a)	Revenue Test				Threshold:
		Satisfies?
	Segment A
	Segment B
	Segment C
	Segment D
	Segment E
(b)	Operating profit or loss test				Threshold:
		Satisfies?
	Segment A
	Segment B
	Segment C
	Segment D
	Segment E
(c)	Identifiable assets test				Threshold:
		Satisfies?
	Segment A
	Segment B
	Segment C
	Segment D
	Segment E
	Which segments are reportable?
		Reportable?
	Segment A
	Segment B
	Segment C
	Segment D
	Segment E