Mason Company has prepared consolidated financial statements for the current yea
ID: 2543077 • Letter: M
Question
Mason Company has prepared consolidated financial statements for the current year and is now gathering information in connection with the following five operating segments it has identified. Company Books Computers Maps Travel Finance $ 163 S 729 $434 $332 S Total 1,658 585 121 159 3,688 1,528 Sales to outside parties Intersegment sales Interest income-external Interest income-intersegment loans Assets Operating expenses Expenses-intersegment sales Interest expense-external Interest Income tax expense (savings) General corporate expenses Unallocated operating costs 36 72 278 51 49 278 43 50 159 45 119 (38) 1,438 1, 308 127 82 848 63 292 58 119 195 93 85 118 expense-intersegment loans 83 (29) 29 61 57 Determine the reportable segments by performing each applicable test. (Figures are in thousands.) a. Revenue test: b. Profit or loss test: c. Asset test: Complete this question by entering your answers in the tabs below Profit or LOssAsset Test Revenue Test Test Determine the reportable segments by performing revenue test. (Round your percentage answers to 1 decimal place. Enter your answers in thousands of dollars.) SegmentRevenues Books Maps Travel Finance TotalExplanation / Answer
Revenue Test Company Total Books Computers Maps Travel Finance Sales to Outsiders 1658 163 729 434 332 0 Intersegment sales 505 36 270 51 148 0 Interest Income - external 121 72 0 0 0 49 Interest Income- Intersegement Loans 159 0 0 0 0 159 Total Revenue 2443 271 999 485 480 208 Segment Revenue/Co Reveneu 11% 41% 20% 20% 9% Under Revenue Test any segment which has 10 % of total revenue of the co should be reported Here revenue includes internal as well external Segments to be reported Books Computer Maps Travel Asset Test Company Total Books Computers Maps Travel Finance Asset 3608 236 1438 278 356 1300 Segment Asset/Total 7% 40% 8% 10% 36% Under Asset test any segment which has atleast 10 % of total asset of the co Segments to be reported Computer Travel Finance Profit Loss Test Company Total Books Computers Maps Travel Finance Sales to outsiders party 1658 163 729 434 332 0 Intersegment sales 505 36 270 51 148 0 Interest Income - external 121 72 0 0 0 49 Interest Income- Intersegement Loans 159 0 0 0 0 159 Total Revenue 2443 271 999 485 480 208 Operating Expense 1528 127 848 306 202 45 Expenses-inter Segement 246 82 63 43 58 0 Interest expense-external 119 0 0 0 0 119 interest expense-inter segment loans 195 33 83 50 29 0 Income tax expense/(Savings) 93 42 -29 57 61 -38 Total expense 2181 284 965 456 350 126 Profit/Loss 262 (13.00) 34 29 130 82 Total of profitable segments 275 Total of non profitable segments (13.00) % -5% 12% 11% 47% 30% Under Profit/Loss test any segment which has atleast 10 % of the total of segment profit/loss of the company should be reported Segements to be reported Computer Maps Travel Finance