Problem

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

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

$6,319

$2,144

$636

$347

-0-

Intersegment transfers

106

131

96

108

-0-

Interest income from outside parties

-0-

19

6

-0-

$ 27

Interest income from intersegment loans

-0-

-0-

-0-

-0-

159

Operating expenses

3,914

1,612

916

579

16

Interest expense

61

16

51

31

87

Tangible assets

1,291

2,986

314

561

104

Intangible assets

72

361

-0-

48

-0-

Intersegment loans

-0-

-0-

-0-

-0-

664

Ecru does not allocate its $1,250,000 in common expenses to the various segments.

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

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