Problem

Mason Company has prepared consolidated financial statements for the current year and is n...

Mason Company has prepared consolidated financial statements for the current year and is now gathering information in connection with the following five operating segments it has identified.

Determine the reportable segments by performing each applicable test. Also describe the procedure utilized to ensure that a sufficient number of segments are being separately disclosed. (Figures are in thousands.)

 

Company Total

Books

Computers

Maps

Travel

Finance

Sales to outside parties

$1,547

$121

$ 696

$416

$314

-0-

Intersegment sales

421

24

240

39

118

-0-

Interest income external

97

60

-0-

-0-

-0-

$ 37

Interest income intersegment loans

147

-0-

-0-

-0-

-0-

147

Assets

3,398

206

1,378

248

326

1,240

Operating expenses

1,460

115

818

304

190

33

intersegment sales

198

70

51

31

46

-0-

Interest expense external

107

-0-

-0-

-0-

-0-

107

Interest expense intersegment loans

177

21

71

38

47

-0-

Income tax expense (savings)

21

12

(41)

27

31

(8)

General corporate expenses

55

 

 

 

 

 

Unallocated operating costs

80

 

 

 

 

 

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