Question

 

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	$	1,831			$	832			$	534			$	329			$	141			$	119
Intersegment revenues		36				111				129				0				36				322
Salary expense		634				399				422				332				337				82
Rent expense		159				186				101				112				62				51
Interest expense		85				79				102				69				34				25
Income tax expense (savings)		161				107				81				(106	)			(84	)			0

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

a. 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.)

	Minimum revenues

..................................

b. If only Red, Blue, and Green necessitate separate disclosure, is Fairfield disclosing disaggregated data for enough segments?

• Yes

• No

• ...............................

• [The following information applies to the questions displayed below.]

  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	$	1,831			$	832			$	534			$	329			$	141			$	119
  Intersegment revenues		36				111				129				0				36				322
  Salary expense		634				399				422				332				337				82
  Rent expense		159				186				101				112				62				51
  Interest expense		85				79				102				69				34				25
  Income tax expense (savings)		161				107				81				(106	)			(84	)			0

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

  c. 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.)

• Volume of revenues(. )

• ...........................

• . Now assume each of the six segments has a profit or loss (in thousands) as follows. Based on these figures, which warrants separate disclosure? (Select all that apply.)

  Red	$	1,094
  Blue		469
  Green		160
  Pink		(114	)
  Black		(242	)
  White		328

• Red

• Blue

• Green

• Pink

• Black

• White

Answer 1