Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. ecru company has identified five industry segments

Ecru Company has identified five industry segments: plastics, metals, lumber, paper, and finance. It appropriately...

70.2K

Verified Solution

Question

Accounting

image

Ecru Company has identified five industry segments: plastics, metals, lumber, paper, and finance. It appropriately consolidated each of these segments in producing its annual financial statements. Information describing each segment (in thousands) follows: Plastics $6,600 143 0 0 Sales to outside parties Intersegment transfers Interest income from outside parties Interest income from intersegment loans Operating expenses Interest expense Tangible assets Intangible assets Intersegment loans (debt) Metals $2,314 165 30 0 1,722 27 3, 156 395 0 Lumber $ 691 130 17 0 1,026 62 484 0 0 Paper $ 402 142 0 0 634 32 731 59 0 Finance $ 0 0 38 193 27 98 159 0 698 4,134 72 1,461 83 0 Ecru does not allocate its $1,500,000 in common expenses to the various segments. Perform testing procedures to determine Ecru's reportable operating segments. a. Revenue test: b. Profit or loss test: C. Asset test

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students