Cineplex Corporation is a diversified company that operates in five different in

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 of segments B and C included intersegment sales of $25,030 and $102,260, respectively.

(a) Determine which of the segments are reportable based on the:

Reportable Segment

(b) Prepare the necessary disclosures required by GAAP. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

A

B

C

Other

Totals

A

B

C

D

E

Sales revenue $43,500 $75,800 $587,500 $37,300 $53,900 Cost of goods sold 21,100 58,600 278,500 21,100 32,100 Operating expenses 9,304 43,500 240,500 12,360 18,780     Total expenses 30,404 102,100 519,000 33,460 50,880 Operating profit (loss) $13,096 $(26,300) $68,500 $3,840 $3,020 Identifiable assets $36,000 $86,500 $504,400 $68,900 $58,600

Explanation / Answer

A B C D E TOTAL Sales revenue 43,500 75,800 5,87,500 37,300 53,900 798000 Cost of goods sold 21,100 58,600 2,78,500 21,100 32,100 Operating expenses 9,304 43,500 2,40,500 12,360 18,780     Total expenses 30,404 1,02,100 5,19,000 33,460 50,880 Operating profit (loss) 13,096 -26,300 68,500 3,840 3,020 62,156 Identifiable assets 36,000 86,500 5,04,400 68,900 58,600 7,54,400 Segment meet the test Revenue Test 10% of Total Sales 79800 C Operating Profit test 10% of total profit 6215.6 A And B Indetifiable asset test 10% of Assets 75440 B,C A B C Other Totals External Revenues 43,500 50,770 4,85,240 91,200 6,70,710 Intersegment Revenues 25030 102260 127290 Total Revenues 43,500 75,800 5,87,500 91,200 7,98,000 Cost of Goods Sold 21,100 58,600 2,78,500 53,200 4,11,400 Operating Expenses 9,304 43,500 2,40,500 31,140 3,24,444 Total Expenses 30,404 1,02,100 5,19,000 84,340 7,35,844 Operating Profit (Loss) 13,096 -26,300 68,500 6,860 62,156 Identifiable Assets 36,000 86,500 5,04,400 1,27,500 7,54,400

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