Question

Required information [The following information applies to the questions displayed below.] Following is financial information describing the six operating segments that make up Fairfield, Inc. (in thousands): Blue Red $1,826 White $ 114 317 31 Sales to outside parties Intersegment revenues Salary expense Rent expense Interest expense Income tax expense (savings) Segments Green Pink $ 529 $ 324 124 0 417 327 96 107 97 64 (101) 77. 106 394 181 74 102 629 154 80 156 Black $ 136 31 332 57 29 (79) 46 20 76 0 Consider the following questions independently. None of the six segments has a primarily financial nature. a. What minimum revenue amount must any one segment generate to be of significant size to require disaggregated disclosure? (Enter your answer in dollars but not in thousands.) Minimum revenues

Answer 1

Answer with working is given below

Sales to Outside parties Intersegment revenues Total Revenue | Red $1,826 $31) $1,857 Blue $827 $106 $933 Green $529 $124 $653 Pink $324 $0 $324 Black $136 $31 $167 White $114 $317 $4310 Total $3,756 $609 $4,365 Minimum Revenue Amount $436,500 An Operating Segment should be reported based on meeting the following criteria The revenue for the segment is 10% or more of the combined revenue Volume of Revenue from a single customer to necessitate separate disclosure Volume of Revenue $375,600 10% of Sales to Outside Parties Total profit Total Loss $2,031 Higher is the base $346 Red Blue Green Pink Black White $1,089 $464 $155 $109 $237 $323 54% 23% 8% 5% 12% 16% Red, Blue, Black and White should be reported separately An Operating Segment should be reported based on meeting any one of the following criteria The absolute value of profit or loss is 10% or more of the greater of a) the combined profit of all operating segments that don't report a loss or b) the combined loss of all operating segments that did report a loss