Question

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

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 $ 6,770 $ 2,369 $ 726 $ 437 $ 0
Intersegment transfers 153 176 141 153 0
Interest income from outside parties 0 37 24 0 45
Interest income from intersegment loans 0 0 0 0 204
Operating expenses 4,274 1,792 1,096 669 34
Interest expense 79 34 69 22 105
Tangible assets 1,517 3,211 539 786 194
Intangible assets 90 406 0 66 0
Intersegment loans (debt) 0 0 0 0 709

Ecru does not allocate its $1,340,000 in common expenses to the various segments.

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

revenue test

segment revenues percentage reported or not reported
plastics
metals
lumber
paper
finance
totals

profit or loss test

segment revenues expenses profit loss reported or not reported
plastics
metals
lumber
paper
finance
total

asset test

segment assets percentage reported or not reported
plastics
metals
lumber
paper
finance
total
0 0
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