Question

West Corporation reported the following consolidated data for 20X2:

Sales	$	1,165,000
Consolidated income before taxes		136,000
Total assets		1,280,000

Data reported for West’s four operating divisions are as follows:

	Division A				Division B				Division C				Division D
Sales to outsiders		$	440,000			$	166,000			$	490,000			$	69,000
Intersegment sales			58,000								18,000				19,000
Traceable costs			253,000				98,000				298,000				90,000
Assets			471,000				113,000				508,000				83,000

Intersegment sales are priced at cost, and all goods have been subsequently sold to nonaffiliates. Some joint production costs are allocated to the divisions based on total sales. These joint costs were $63,000 in 20X2. The company’s corporate center had $28,000 of general corporate expenses and $128,000 of assets that the chief operating decision maker did not use in making the decision regarding the operating segments.

Required:
Each of the following items is unrelated to the others.

a. The divisions are industry segments.

(1) Prepare a segmental disclosure worksheet for the company. (Do not round your intermediate calculations.)
A Operating Segments B C D Corporate Combined Intersegment Eliminations Consolidated Admin. Revenues: $ $ 166,000 $ 490,000 $ 69,000 $ 440,000 58,000 498,000 1,165,000 58,000 1,223,000 $ 1,165,000 58,000 1,223,000 166,000 490,000 69,000 0 0 253,000 98,000 298,000 90,000 739,000 739,000 245,000 68,000 192,000 (21,000) 484,000 484,000 Sales to unaffiliated customers Intersegment sales Total revenue Operating costs: Traceable costs Allocated Segment profit (loss) Other items: General corporate expenses Income from continuing operations Assets: Segment General corporate Total assets 01 484, 000 245,000 68,000 192,000 (21,000) 0 0 484,000 471,000 113,000 508,000 83,000 1,175,000 1,175,000 or $ 471,000 $ 113,000 $ 508,000 $ 83,000 $ 0 $ 1,175,000 $ 0 $ 1,175,000

Answer 1

West Corporation Requirement a.1. Operating Segments Intersegment Corp. Admin Combined Eliminations Consolidated B C D 166000 1165000 440000 58000 498000 490000 18000 508000 69000 19000 1165000 95000 1260000 -95000 -95000 166000 1165000 95000 Revenues: Sales to unaffiliated customers Intersegment sales Total revenue Operating costs: Traceable costs Allocated Segment profit (loss) Other items: General corporate expenses Income from continuing operations Assets: Segment General corporate Total assets -253000 -24900 220100 -98000 -8300 59700 -298000 -25400 184600 90000 4400 -6400 -739000 -63000 458000 -644000 -63000 458000 -28000 -28000 -28000 430000 -28000 430000 220100 59700 184600 -6400 471000 113000 508000 83000 1175000 128000 1303000 1175000 128000 1303000 471000 113000 128000 128000 508000 83000 0 Operating Segment A: $24,900 = ($498,000 / $1,260,000) < $63,000 Operating Segment B: $8,300 = ($166,000 / $1,260,000) < $63,000 Operating Segment C: $25,400 = ($508,000 / $1,260,000) $63,000 Operating Segment D: $4,400 = ($88,000 / $1,260,000) $63,000 Requirement a.2. Segments Segment Segment Revenue Profit Assets Yes Yes Yes Yes Yes No Yes Yes Yes No No No

Requirement b Country A Domestic B Foreign C Foreign D Foreign Revenue Yes Yes Yes No Long-Lived Assets 235500 Yes 56500 No 254000 Yes 41500 No 587500 Requirement 1165000 x 10% = 116500 Sales greater than or equal to $116,500 to a single customer would be noted.