Problem

The consolidated income statement of Tut Company for 2011 is as follows (in thousands):TUT...

The consolidated income statement of Tut Company for 2011 is as follows (in thousands):

TUT CONSOLIDATED INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2011

Sales

$360

Interest income

10

Income from equity investee

30

Total revenue

400

Cost of sales

$180

General expenses

40

Selling expenses

50

Interest expense

10

Noncontrolling interest share

15

Income taxes

45

Total expenses

340

Income before extraordinary loss

$60

Extraordinary loss (net of income taxes)

10

Consolidated net income

$50

Tut’s operations are conducted through three domestic operating segments with sales, expenses, and assets as follows (in thousands):

 

Chemical

Food

Drug

Corporate

Sales (including intersegment sales)

$160

$140

$120

 

Cost of sales (including intersegment cost of sales)

80

70

60

 

General expenses

15

10

10

$5

Selling expenses

20

 15

15

 

Interest expense (unaffiliated)

 

5

5

 

Identifiable assets

200

180

150

200

Investment in equity investee

 

 

 

300

The $10,000 interest income is not related to any industry segment. Consolidated total assets are $1,000,000. The chemical and food segments had intersegment sales of $35,000 and $25,000, respectively.

REQUIRED: Prepare a schedule of required disclosures for Tut’s industry segments in a form acceptable for reporting purposes. Assume the CODM uses operating profit to evaluate segments.

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Solutions For Problems in Chapter 15