Problem

Sur Corporation’s internal divisions are based on industry. The revenues, operating profit...

Sur Corporation’s internal divisions are based on industry. The revenues, operating profits, and assets of the operating segments of Sur are presented in thousands of dollars as follows:

 

Sales to Nonaffiliates

Intersegment Sales

Total Sales

Operating Profit (Loss)

Assets

Food service industry

$150,000

$20,000

$170,000

$20,000

$100,000

Copper mine

40,000

40,000

(5,000)

30,000

Information systems

10,000

7,500

17,500

2,500

20,000

Chemical industry

65,000

10,000

75,000

15,250

108,500

Agricultural products

24,000

24,000

(7,750)

25,000

Pharmaceutical products

10,000

10,000

4,000

9,000

Foreign operations

7,500

7,500

2,500

10,000

Corporate assets*

 

 

 

 

16,500

 

$306,500

$37,500

$344,000

$31,500

$319,000

*Corporate assets include equity investees of $5,000 and general assets of $11,500.

REQUIRED: Determine the reportable segments of Sur Corporation.

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Solutions For Problems in Chapter 15