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  1. business
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  3. finney company's condensed income statement is pre

Finney Company's condensed income statement is presented below: revenues $1,000,000...

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Accounting

Finney Company's condensed income statement is presented below:

revenues $1,000,000
expenses
cost of goods sold $500,000
operating and administrative expenses $300,000
Depreciation expense $60,000 $860,000
Income before taxes $140,000
income tax expense $29,400
net income $110,600
Earnings per share (100,000) $1.11

The following data is compiled relative to Finney's operating Segments:

Percent identified with Segment
hotels grains Candy
revenues 42% 50% 8%
cost of goods sold 48% 49% 3%
operating and administrative expense 35% 50% 15%
depreciation expense 46% 42% 12%

Included in the amounts allocated to each segment on the above percentages are the following expenses which relate to general corporate activities:

Operating Segment
Hotels Grains candy totals
operating and administrative expense $15,000 $10,000 $4,000 $29,000
depreciation expense $3,500 $5,000 $4,500 $13,000

Instructions:

(a) prepare a schedule showing the amounts distributed to each segment

(b) based only on the above information, which segments must be reported and why?

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