Problem

The following data for 2011 relate to Hay Industries, a worldwide conglomerate:  ...

The following data for 2011 relate to Hay Industries, a worldwide conglomerate:

 

Sales to Unaffiliated Customers

Intersegment Sales

Operating Profit (Loss)

Assets

Food

$300,000

$50,000

$45,000

$310,000

Chemical

110,000

40,000

23,000

150,000

Textiles

65,000

5,000

(8,000)

60,000

Furniture

48,000

9,000

40,000

Beverage

62,000

10,000

18,000

60,000

Oil

15,000

(2,000)

25,000

Segment

600,000

105,000

85,000

645,000

Corporate

(7,000)

15,000

Consolidated

$600,000

0

$78,000

$660,000

REQUIRED : Answer the following questions related to Hay’s required segment disclosures and show computations:

1. Which segments are reportable segments under (a) the revenue test, (b) the operating-profit test, and (c) the asset test?


2. Do additional reportable segments have to be identified?

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Solutions For Problems in Chapter 15