Apply threshold tests
The following data for 2011 relate to Hay Industries, a worldwide conglomerate:
|
Sales to Unaffiliated Customers |
Intersegment Sales |
Operating Profit (Loss) |
Assets |
|
|
Food |
$300,000 |
$ 50,000 |
$45,000 |
$310,000 |
|
Chemical |
110,000 |
40,000 |
23,000 |
150,000 |
|
Textiles |
65,000 |
5,000 |
(8,000) |
60,000 |
|
Furniture |
48,000 |
— |
9,000 |
40,000 |
|
Beverage |
62,000 |
10,000 |
18,000 |
60,000 |
|
Oil |
15,000 |
— |
(2,000 ) |
25,000 |
|
Segment |
600,000 |
105,000 |
85,000 |
645,000 |
|
Corporate |
— |
— |
(7,000 ) |
15,000 |
|
Consolidated |
$600,000 |
0 |
$78,000 |
$660,000 |
REQUIRED : Answer the following questions related to Hay’s required segment disclosures and show computations:
1. Which segments are reportable segments under (a) the revenue test, (b) the operating profit test, and (c) the asset test?
2. Do additional reportable segments have to be identified?