Segment reporting Western-Southern Publishing Co. prepares income statements segmented...

Segment reporting

Western-Southern Publishing Co. prepares income statements segmented by divisions, but the chief operating officer is not certain about how the company is actually performing. Financial data for the year follow:

The Electronic Publishing Division appears to be floundering, and the CEO believes a closer look should be taken concerning its operating effectiveness. Additional data regarding this division follow:

The Electronic Division’s accounting books are downloadable texts sold to auditors and controllers. The current data on these two markets follow:

Required:

1. Prepare an income statement segmented by products of the Electronic Division for 2013, including a column for the division as a whole. (Hint: To obtain the common fixed expenses, start with the total direct expenses in the Electronic Division.)

2. Prepare an income statement, segmented by markets, for the accounting books of the Electronic Division.

3. Evaluate the accounting books of the Electronic Division. Should all books be kept, or should some books be discontinued?