Segment Reporting Worksheet and Schedules
Calvin Inc. has operating segments in five different industries: apparel, building, chemical, furniture, and machinery. Data for the five segments for 20X1 are as follows:
| Apparel | Building | Chemical | Furniture | Machinery |
Sales to nonaffiliates | $870,000 | $750,000 | $55,000 | $95,000 | $180,000 |
Intersegment sales |
|
| 5,000 | 15,000 | 140,000 |
Cost of goods sold | 480,000 | 450,000 | 42,000 | 78,000 | 150,000 |
Selling expenses | 160,000 | 40,000 | 10,000 | 20,000 | 30,000 |
Other traceable |
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expenses | 40,000 | 30,000 | 6,000 | 12,000 | 18,000 |
Allocated general |
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corporate expenses | 80,000 | 75,000 | 7,000 | 13,000 | 25,000 |
Other information: |
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Segment assets | 610,000 | 560,000 | 80,000 | 90,000 | 140,000 |
Depreciation expense | 60,000 | 50,000 | 10,000 | 11,000 | 25,000 |
Capital expenditures | 20,000 | 30,000 |
|
| 15,000 |
Additional Information
1. The corporate headquarters had general corporate expenses totaling $235,000. For internal reporting purposes, $200,000 of these expenses were allocated to the divisions based on their cost of goods sold. The other corporate expenses are not used in segmental decision making by the chief operating decision maker.
2. The company has an intercorporate transfer pricing policy that all intersegment sales shall be priced at cost. All intersegment sales were sold to outsiders by December 31, 20X1.
3. Corporate headquarters had assets of $125,000 that were not used in segmental decision making by the chief operating decision maker.
4. The depreciation expense (listed in the section titled “Other information”) has already been added into cost of goods sold in accordance with the company’s cost measurement policies.
Required
a. Prepare a segmental disclosure worksheet for Calvin Inc.
b. Prepare schedules to show which segments are separately reportable.
c. Prepare the information about the company’s operations in different industry segments as required by FASB 131 (ASC 280).
d. Would there be any differences in the specification of reportable segments if the building segment had $460,000 in assets instead of $560,000, and the furniture segment had $190,000 in assets instead of $90,000? Justify your answer by preparing a schedule showing the percentages for each of the three 10 percent segment tests for each of the five segments using these new amounts for segment assets.
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