Question

The following is financial information describing the six operating segments that make up Fairfield, Inc. (in thousands):

	Segments
	Red				Blue				Green				Pink				Black				White
Sales to outside parties	$	1,811			$	812			$	514			$	309			$	121			$	99
Intersegment revenues		16				91				109				0				16				302
Salary expense		614				379				402				312				317				62
Rent expense		139				166				81				92				42				31
Interest expense		65				59				82				49				14				5
Income tax expense (savings)		141				87				61				(86	)			(64	)			0

Consider the following questions independently. None of the six segments have a primarily financial nature.

What minimum revenue amount must any one segment generate to be of significant size to require disaggregated disclosure? (Enter your answer in dollars but not in thousands.)

What volume of revenues must a single customer generate to necessitate disclosing the existence of a major customer? (Enter your answer in dollars but not in thousands.)

Now assume each of these six segments has a profit or loss (in thousands) as follows, which warrants separate disclosure?

Answer 1

Solution:

NOTE: -

If you have any doubts please comment it I will here to help you, do not give a directly thumbs down. if you satisfied my work please thumbs up.

*** Thank you ***