Medford Company has seven operating segments but only four (G, H, I, and J) are of significant size to warrant separate disclosure. As a whole, the segments generated revenues of $710,000 ($520,000 + $190,000) from outside parties. In addition, the segments had $260,000 in intersegment transfers ($220,000 + $40,000).
| Outside Sales | Intersegment Sales |
G | $120,000 | $ 80,000 |
H | 150,000 | 50,000 |
I | 160,000 | 20,000 |
J | 90,000 | 70,000 |
Totals | $520,000 | $220,000 |
K | $ 60,000 | -0- |
L | 70,000 | $ 20,000 |
M | 60,000 | 20,000 |
Totals | $190,000 | $ 40,000 |
Which of the following statements is true?
a. A sufficient number of segments are being reported because those segments have $740,000 in revenues of a total of $970,000 for the company as a whole.
b. Not enough segments are being reported because those segments have $520,000 in outside sales of a total of $710,000 for the company as a whole.
c. Not enough segments are being reported because those segments have $740,000 in revenues of a total of $970,000 for the company as a whole.
d. A sufficient number of segments are being reported because those segments have $520,000 in outside sales of a total of $710,000 for the company as a whole.
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