Question

Problem 24-2
Flounder Corporation is a diversified company that operates in five different industries: A, B, C, D, and E. The
following information relating to each segment is available for 2018.
A B C D E
Sales revenue $40,100 $74,500 $575,600 $34,900 $55,000
Cost of goods sold 19,400 49,200 270,300 19,100 29,900
Operating expenses 10,100 39,700 235,900 12,000 18,300
Total expenses 29,500 88,900 506,200 31,100 48,200
Operating profit (loss) $10,600 $(14,400) $69,400 $3,800 $6,800
Identifiable assets $35,600 $79,000 $490,300 $65,700 $49,700
Sales of segments B and C included intersegment sales of $20,300 and $101,700, respectively.
(a) Determine which of the segments are reportable based on the:
Reportable Segment
(1) Revenue test.
(2) Operating profit (loss) test.
(3) Identifiable assets test.
(b) Prepare the necessary disclosures required by GAAP. (Enter negative amounts using either a negative
sign preceding the number e.g. -45 or parentheses e.g. (45).)
A B C Other Totals
External Revenues
$
$
$
$
$
Intersegment Revenues
Total Revenues
$
Cost of Goods Sold
Operating Expenses
Total Expenses
Operating Profit (Loss)
$
$
$
$
$
Identifiable Assets
$
$
$
$
$

Answer 1