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.)
|
..................................
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
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