Cineplex Corporation is a diversified company that operates in five different in
ID: 2498901 • Letter: C
Question
Cineplex Corporation is a diversified company that operates in five different industries: A, B, C, D, and E. The following information relating to each segment is available for 2015.
A
B
C
D
E
Sales revenue
$40,400
$74,400
$582,500
$38,400
$54,200
Cost of goods sold
20,000
57,800
279,900
20,000
31,200
Operating expenses
9,249
40,400
242,800
12,310
18,860
Total expenses
29,249
98,200
522,700
32,310
50,060
Operating profit (loss)
$11,151
$(23,800)
$59,800
$6,090
$4,140
Identifiable assets
$40,500
$82,500
$504,900
$72,500
$57,800
Sales of segments B and C included intersegment sales of $22,410 and $101,520, respectively.
(a) Determine which of the segments are reportable based on the:
Revenue Test
Operating profit (loss) test
Identifiable assets test
(b) Prepare the necessary disclosures required by GAAP
A B C Other Totals
External Revenues
Intersegment Revenues
Total Revenues
Cost of Goods Sold
Operating Expenses
Total Expenses
Operating profit (loss)
Identifiable Assets
A
B
C
D
E
Sales revenue
$40,400
$74,400
$582,500
$38,400
$54,200
Cost of goods sold
20,000
57,800
279,900
20,000
31,200
Operating expenses
9,249
40,400
242,800
12,310
18,860
Total expenses
29,249
98,200
522,700
32,310
50,060
Operating profit (loss)
$11,151
$(23,800)
$59,800
$6,090
$4,140
Identifiable assets
$40,500
$82,500
$504,900
$72,500
$57,800
Explanation / Answer
A
B
C
D
E
Total
Sales revenue
$40,400
$74,400
$582,500
$38,400
$54,200
789900
Less- intersegment sales
22,410
101,520
Net sales
$40,400
$51,990
$480,920
$38,400
$54,200
665970
Revenue Test
6.07
7.81
72.21
5.77
8.14
100
Cost of goods sold
20,000
57,800
279,900
20,000
31,200
Operating expenses
9,249
40,400
242,800
12,310
18,860
Total expenses
29,249
98,200
522,700
32,310
50,060
Operating profit (loss)
$11,151
$(23,800)
$59,800
$6,090
$4,140
81181
Operating profit (loss) test
13.74
29.32
73.66
7.5
5.1
Identifiable assets
$40,500
$82,500
$504,900
$72,500
$57,800
758200
Identifiable assets test
5.34
10.88
66.60
9.56
7.62
Reportable segment
Yes
Yes
Yes
No
No
A
B
C
D
E
Total
Sales revenue
$40,400
$74,400
$582,500
$38,400
$54,200
789900
Less- intersegment sales
22,410
101,520
Net sales
$40,400
$51,990
$480,920
$38,400
$54,200
665970
Revenue Test
6.07
7.81
72.21
5.77
8.14
100
Cost of goods sold
20,000
57,800
279,900
20,000
31,200
Operating expenses
9,249
40,400
242,800
12,310
18,860
Total expenses
29,249
98,200
522,700
32,310
50,060
Operating profit (loss)
$11,151
$(23,800)
$59,800
$6,090
$4,140
81181
Operating profit (loss) test
13.74
29.32
73.66
7.5
5.1
Identifiable assets
$40,500
$82,500
$504,900
$72,500
$57,800
758200
Identifiable assets test
5.34
10.88
66.60
9.56
7.62
Reportable segment
Yes
Yes
Yes
No
No
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.