Ecru Company has identified five industry segments: plastics, metals, lumber, paper, and finance. It
Ecru Company has identified five industry segments: plastics, metals, lumber, paper, and finance.
It appropriately consolidated each of these segments in producing its annual financial statements. Information describing each segment (in thousands) follows: Plastics Metals Lumber Paper Finance Sales to outside parties $ 6,415 $ 2,194 $ 656 $ 367 $ 0 Intersegment transfers 118 141 106 118 0 Interest income from outside parties 0 23 10 0 31 Interest income from intersegment loans 0 0 0 0 169 Operating expenses 3,994 1,652 956 599 20 Interest expense 65 20 55 29 91 Tangible assets 1,340 3,036 364 611 124 Intangible assets 76 371 0 52 0 Intersegment loans (debt) 0 0 0 0 674
Ecru does not allocate its $1,270,000 in common expenses to the various segments.
Perform testing procedures to determine Ecru’s reportable operating segments.
Revenue test:
Profit or loss test:
Asset test: