Industry Segment and Geographic Area Revenue Tests
Symbiotic Chemical Company has four major industry segments and operates both in the U.S. domestic market and in several foreign markets. Information about its revenue from the specific industry segments and its foreign activities for the year 20X2 is as follows:
Sales to Unaffiliated Customers (in thousands) | |||
Industry Segment | Domestic | Foreign | Total |
Ethical Drugs | $300 |
| $300 |
Nonprescription Drugs | 325 | $100 | 425 |
Generic Drugs | 125 | 245 | 370 |
Industrial Chemicals | 70 |
| 70 |
Sales to Affiliated Customers (in thousands) | |||
Industry Segment | Domestic | Foreign | Total |
Ethical Drugs | $20 |
| $ 20 |
Nonprescription Drugs | 50 | $40 | 90 |
Generic Drugs | 40 | 60 | 100 |
Industrial Chemicals | 10 |
| 10 |
All of the foreign revenues of the Nonprescription Drugs segment, both to unaffiliated and intersegment customers, were attributable to a Taiwanese division of the company. This division operated exclusively in Taiwan except for a $10,000 sale from the division to a U.S. subsidiary of the company. All other foreign operations of the company take place exclusively within the country of Mexico.
Required
a.Determine which of the company’s operating segments are separately reportable under the revenue test for segment reporting.
b.Determine which of the foreign countries are separately reportable under the revenue test for reporting foreign operations using a 10 percent materiality threshold.
c.Prepare a schedule for disclosing the company’s revenue by industry segment for 20X2.
d.Prepare a schedule for disclosing the company’s revenue by geographic area for 20X2.
We need at least 10 more requests to produce the solution.
0 / 10 have requested this problem solution
The more requests, the faster the answer.