3. Mason Company has prepared consolidated financial statements for the current
ID: 2595343 • Letter: 3
Question
3. 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
Total
Books
Computers
Maps
Travel
Finance
Sales to outside parties
$
1,774
$
203
$
769
$
452
$
350
$
0
Intersegment sales
589
48
300
63
178
0
Interest income—external
145
84
0
0
0
61
Interest income—intersegment loans
171
0
0
0
0
171
Assets
3,795
266
1,498
308
363
1,360
Operating expenses
1,579
139
878
291
214
57
Expenses—intersegment sales
284
94
75
45
70
0
Interest expense—external
131
0
0
0
0
131
Interest expense—intersegment loans
243
45
95
62
41
0
Income tax expense (savings)
165
72
(17
)
87
91
(68
)
General corporate expenses
115
Unallocated operating costs
140
Determine the reportable segments by performing each applicable test. (Figures are in thousands.)
a. Revenue test:
b. Profit or loss test:
c. Asset test:
Revenue Test
Determine the reportable segments by performing revenue test. (Round your percentage answers to 1 decimal place. Enter your answers in thousands of dollars.)
Segment
Revenues
Percentage
Reported or Not Reported
Books
?
?%
?
Computers
?
?%
?
Maps
?
?%
?
Travel
?
?%
?
Finance
?
?%
?
Total
?
?%
?
Profit or Loss Test
Determine the reportable segments by performing profit or loss test. (Enter your answers in thousands of dollars.)
Segment
Revenues
Expenses
Profit
Loss
Reported or Not Reported
Books
?
?
?
?
?
Computers
?
?
?
?
?
Maps
?
?
?
?
?
Travel
?
?
?
?
?
Finance
?
?
?
?
?
Total
Asset Test
Determine the reportable segments by performing asset test. (Round your percentage answers to 1 decimal place. Enter your answers in thousands of dollars.)
Segment
Assets
Percentage
Reported or Not Reported
Books
?
?%
?
Computers
?
?%
?
Maps
?
?%
?
Travel
?
?%
?
Finance
?
?%
?
Total
Company
Total
Books
Computers
Maps
Travel
Finance
Sales to outside parties
$
1,774
$
203
$
769
$
452
$
350
$
0
Intersegment sales
589
48
300
63
178
0
Interest income—external
145
84
0
0
0
61
Interest income—intersegment loans
171
0
0
0
0
171
Assets
3,795
266
1,498
308
363
1,360
Operating expenses
1,579
139
878
291
214
57
Expenses—intersegment sales
284
94
75
45
70
0
Interest expense—external
131
0
0
0
0
131
Interest expense—intersegment loans
243
45
95
62
41
0
Income tax expense (savings)
165
72
(17
)
87
91
(68
)
General corporate expenses
115
Unallocated operating costs
140
Explanation / Answer
Revenue Test
Profit or Loss Test
Asset Test
Segments Revenues Percentage Reported or Not Reported Books 335 13% Reported Computers 1069 40% Reported Maps 515 19% Reported Travel 528 20% Reported Finance 232 9% Not Reported Total 2679 100%Related Questions
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