Items 1 and 2 are based on the following:
Grum Corp., a publicly owned corporation, is subject to the requirements for segment reporting. In its income statement for the year ended December 31, 2006, Grum reported revenues of $50,000,000, operating expenses of $47,000,000, and net income of $3,000,000. Operating expenses include payroll costs of $15,000,000. Grum’s combined identifiable assets of all industry segments at December 31, 2006, were $40,000,000. Reported revenues include $30,000,000 of sales to external customers.
In its 2006 financial statements, Grum should disclose major customer data if sales to any single customer amount to at least
- $ 300,000
- $1,500,000
- $4,000,000
- $5,000,000
External revenue reported by operating segments must be at least
- $22,500,000
- $15,000,000
- $12,500,000
- $37,500,000