Posted: August 9th, 2016
Problem 1:
Plastics Inc. is a company that operates in four different divisions. The following information relating to each segment is available for 2013.
Sales revenue Cost of goods sold Operating expenses Total expenses Operating profit (loss) Identifiable assets
Bottles $ 65,000 $ 26,000 $8,000 $ 34,000 $31,000 $ 66,000
Containers $ 95,000 $ 62,000 $ 48,000 $ 110,000 $ (15,000) $ 80,000
Dollhouses $ 620,000 $ 353,000 $140,000 $ 493,000 $ 127,000 $ 640,000
Silverware $18,000 $ 8,000 $ 6,500 $14,500 $3,500 $36,000
Sales of segments Containers and Dollhouses included intersegment sales of $30,000 and $150,000, respectively.
Required
Determine which of the segments are reportable based on the following:
– Revenue Test
– Operating profit (loss) test
– Identifiable assets test
Problem 2:
The following information pertains to Walrus Inc.
Cash $60,000
Accounts receivable 170,000
Inventory 100,000
Plant assets (net) 582,000
Total assets $912,000
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