Question: Metlock 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 |
|
$39,300 |
|
$74,500 |
|
|
$569,900 |
|
$35,000 |
|
$54,500 |
| Cost of goods sold |
|
18,800 |
|
50,400 |
|
|
267,900 |
|
19,300 |
|
29,900 |
| Operating expenses |
|
10,200 |
|
39,900 |
|
|
237,900 |
|
12,100 |
|
18,000 |
| Total expenses |
|
29,000 |
|
90,300 |
|
|
505,800 |
|
31,400 |
|
47,900 |
| Operating profit (loss) |
|
$10,300 |
|
$(15,800) |
|
$64,100 |
|
$3,600 |
|
$6,600 |
| Identifiable assets |
|
$35,700 |
|
$80,500 |
|
|
$502,100 |
|
$65,500 |
|
$50,800 |
Metlock 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 |
|
$39,300 |
|
$74,500 |
|
|
$569,900 |
|
$35,000 |
|
$54,500 |
| Cost of goods sold |
|
18,800 |
|
50,400 |
|
|
267,900 |
|
19,300 |
|
29,900 |
| Operating expenses |
|
10,200 |
|
39,900 |
|
|
237,900 |
|
12,100 |
|
18,000 |
| Total expenses |
|
29,000 |
|
90,300 |
|
|
505,800 |
|
31,400 |
|
47,900 |
| Operating profit (loss) |
|
$10,300 |
|
$(15,800) |
|
$64,100 |
|
$3,600 |
|
$6,600 |
| Identifiable assets |
|
$35,700 |
|
$80,500 |
|
|
$502,100 |
|
$65,500 |
|
$50,800 |
Sales of segments B and C included intersegment sales of $20,400 and $98,400, respectively.
(a) Determine which of the segments are reportable based on the:
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|
|
|
Reportable Segment
|
| (1) |
|
Revenue test. |
|
 ABCDEA and BA and CA and DA, B and CB and CB and EB, D and E
|
| (2) |
|
Operating profit (loss) test. |
|
ABCDEA and BA and CA and DA, B and CB and CB and EB, D and E
|
| (3) |
|
Identifiable assets test. |
|
ABCDEA and BA and CA and DA, B and CB and CB and EB, D and E
|