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Item 1 3.33 points

Ecru Company has identified five industry segments: plastics, metals, lumber, paper, and finance.

It appropriately consolidated each of these segments in producing its annual financial statements. Information describing each segment (in thousands) follows:

	Plastics				Metals				Lumber				Paper				Finance
Sales to outside parties	$	6,625			$	2,334			$	701			$	412			$	0
Intersegment transfers		146				169				134				146				0
Interest income from outside parties		0				32				19				0				40
Interest income from intersegment loans		0				0				0				0				197
Operating expenses		4,174				1,742				1,046				644				29
Interest expense		74				29				64				30				100
Tangible assets		1,467				3,176				504				751				169
Intangible assets		85				399				0				61				0
Intersegment loans (debt)		0				0				0				0				702

Ecru does not allocate its $1,480,000 in common expenses to the various segments.

Perform testing procedures to determine Ecru’s reportable operating segments.

1. Revenue test:

2. Profit or loss test:

3. Asset test:

Ecru Company has identified five industry segments: plastics, metals, lumber, paper, and finance. It appropriately consolidated each of these segments in producing its annual financial statements. Information describing each segment (in thousands) follows: Plasties Metals LumberPaper Finance $6,625 2,334701 Sales to outside parties Intersegment transfers Interest income from outside parties Interest income from intersegment loans Operating expenses Interest expense Tangible assets Intangible assets Intersegment loans (debt) 412 0 169 32 146 134 146 1 0 197 2 9 100 169 ,174 1,742 29 1,046 644 504 1,467 85 3,176 399 751 61 702 Ecru does not allocate its $1,480,000 in common expenses to the various segments. Perform testing procedures to determine Ecru's reportable operating segments. a. Revenue test: b. Profit or loss test: c. Asset test: Complete this question by entering your answers in the tabs below Revenue TestProfit or Loss Asset Test Test Perform revenue test procedure to determine Ecru's reportable operating segments. (Round your percentage answers to 1 decimal place. Enter your answers in thousands of dollars.) or Segment Revenues Percentage Re Plastics Metals Lumber Paper Finance Total Revenue Test Profit or Loss Test

Answer 1