Question

Carla 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		$75,800			$580,100		$35,700		$53,900
Cost of goods sold		18,800		50,000			269,200		19,200		29,400
Operating expenses		9,800		39,600			235,400		12,300		18,200
Total expenses		28,600		89,600			504,600		31,500		47,600
Operating profit (loss)		$11,500		$(13,800)			$75,500		$4,200		$6,300
Identifiable assets		$35,000		$81,200			$494,400		$64,600		$49,50

Sales of segments B and C included intersegment sales of $20,200 and $101,800, respectively.

Q. Prepare the necessary disclosures required by GAAP.
A B C Other Total

External Revenue $ $ $ $ $

Intersegment Revenues

Total Revenues

Cost of Good Sold

Operating expenses

Total Expenses

Operating Profit(Loss)

Identifiable Assets

Answer 1

As per the information provided in the question, necessary disclosure for Carla Corporation is presented below:

	A	B	C	Others	Total
External Revenue	$    40,100	$      55,600	$     478,300	$      89,600	$663,600
Inter segment Revenues	$          -	$      20,200	$     101,800	$             -	$122,000
Total Revenues	$    40,100	$      75,800	$     580,100	$      89,600	$785,600
Cost of goods sold	$    18,800	$      50,000	$     269,200	$      48,600	$386,600
Operating expenses	$     9,800	$      39,600	$     235,400	$      30,500	$315,300
Total expenses	$    28,600	$      89,600	$     504,600	$      79,100	$701,900
Operating profit (loss)	$    11,500	$     (13,800)	$      75,500	$      10,500	$ 83,700
Identifiable assets	$    35,000	$      81,200	$     494,400	$      69,550	$    4,950

Inter segment Revenues are there in segment B & C only.

External revenue= Sales Revenue - Inter segment Revenues

Segment D & E are classified as others as per the format provided in question hence values of segment D & E are clubbed and shown under "Others" column

Formula pasted below for ease of understanding:

Column G & H of excel sheet is for working and calculation purpose. These columns are not used in the final table presented above