York Drug Company has two reportable operating segments, A and B. The 2007 condensed income statement for

Question:

York Drug Company has two reportable operating segments, A and B. The 2007 condensed income statement for the entire company is as follows:
Sales ............. $90,000
Cost of goods sold ....... (50,000)
Gross profit ......... $40,000
Operating expenses ...... (18,000)
Income before income taxes ... $22,000
Income tax expense ....... (8,800)
Net Income ........... $13,200
Additional Information:
1. Sales are made as follows: Segment A, $52,000; Segment B, $26,000; other segments, $12,000 of the total.
2. Cost of goods sold for each segment is as follows: Segment A, $30,000; Segment B, $12,500; other segments, $7,500.
3. Operating expenses are identified with the segments as follows: Segment A, $10,000; Segment B, $4,500; other segments, $3,500. There are no general corporate expenses.
4. The company has $110,000 total assets as of December 31, 2007. These assets are assigned to the segments as follows:
Segment A, $49,500; Segment B, $38,500; other segments, $22,000. There are no general corporate assets.

Required
Prepare a schedule that reports on the 2007 revenues, profit, and assets of Segments A and B and the other segments of the York Drug Company.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Intermediate Accounting

ISBN: 978-0324300987

10th Edition

Authors: Loren A Nikolai, D. Bazley and Jefferson P. Jones

Question Posted: