Question

s Segment Reporting Worksheet and Schedules Calvin Inc. has operating segments in five different industries: apparel, building, chemical ture, and machinery. Data for the five segments for 20XI are as follows: Apparel Building ChemicalFurniture Machine $870.000 $750.000 Sales to nonaffillates Intersegment sales Cost of goods sold Selling expenses Other traceable $55.000 $95.000 40,000 420005.000 6,000 7,000 5.000 480000 450,000 78,000 160,000 40,000 80,000 610,000 20,000 10.000 expenses 30,000 75.000 560,000 12.000 Allocated general corporate expenses 13,000 Other information Segment assets Depreciation expense Capital expenditures 50.00080.000 1 1,000 30,000100009000 Additional Information 1. The corporate headquarters had general corporate expenses totaling $2 nal reporting purposes, $200,000 their cost of goods sold. The chief operating decision maker does not use the expenses for making segmental decisions of these expenses were allocated to the divisions 2. The company has an intercorporate transfer pricing policy that all intersegment 3. Corporate headquarters had assets of $125,000 that the chief operating decision 4 The depreciation expense (listed in the section titled Other Information) has alrcad priced at cost. All intersegment sales were sold to outsiders by December 31 use for making segmental decisions. into cost of goods sold in accordance with the company's cost measurement polico 31, 20X1 maker d a. Prepare a segmental disclosure worksheet for Calvin Inc. b. Prepare schedules to show which segments are separately reportable. c. Prepare the information about the company's operations in different industry segments as d. Would there be any differences in the specification of reportable segments if the building seg required by ASC 280 ment had $460,000 assets instead of $90,000? Justify your answer by preparing a schedule showing the percentages or each of the three 10 percent segment tests for each of the five segments using these new in assets instead of $560,000 and the furniture segment had $190,000 in amounts for segment assets

Answer 1

Sol CalVin, IMC Ses mental Didpsuxe woncsheet Fos the Yea ded Decembex 31, 2ox Cosposata operating ement minis Reveru Sales to unaffil iate d 59 000 Salis 870000 7Soo oo,I o, o00 32,od EfPersse ccds Sol 2og oeo 260p00) l66, ooo o,oco Tsaccablc Alocat Total

1 ,766 Segmoo 3yyooo unall 30 35 ) es contimaing 05c(00) o sa 3600e lo,00o Taxes 2Scco 12S 000 meut yes Yes No Bidingyes es No 0 MachinuyYe yes No

$21 {/co(combined totoledes er equal to epyately sapos tabe Segmewh of sly80,000 χ ο.io) tes blus to tmaffiliated Customers 75. Soles to enofflicted Customess fo all Segmesuti

Calvivn, In c Foot note x on a oRescting segmeut Intex Hers | elimin bend! Co Soldated Salus to Cuustomes yo, ovo 20,000(16 o,oo) Sales Tota S 329, ooo $RoooseGo.ooo) $19ς9 oco Profit s(3y1, 00 Umallocoted general cosf Continuiw9 opesations Oco asseな 2S,ooo Vota edt

erperse Capita ex Pendlituzes$2000$30,c00 $6Çoco Reconailiation Reconciliaton and loss to consolidated bevenve to Consolisloted eveme Total sevenue To,cco ches loss limination づeue nous Co Re conciliation esable semaut Awe e conCl Asset Consolidat ed Ass es; Seg evenne to consolidated Recon cili aktion of sepstableRe conciliation sepestable gegment Psofit and lors to consolidatee Pofit os loss Seveyue Total sevenue f Total Psofit and lo362, 00o sefos table Segmeuts

Re conciliaton ostable econciliation stable segmeat Profi an oks to Consolidated othes sevenues 17,o onou 10% eafenses Covo Seweuas axes ASs Cos Consolisjot eal to

chedula shobujng toee ten re* Regmet aset en pes (Loxs) Revei g 2, lle, ovo S 362,000 $1489,00 B753 156,01- 362,000 hem $2,ll9 coo s 362,ooo 362,000 luso 2, 362,000

S,ooo $97000) Bie Chemcal es es 0 Yes yes aes aa