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 $6,319 $2,144 $636 $347 –0– Intersegment transfers 106 131 96 108 –0– Interest income from outside parties –0– 19 6 –0– $27 Interest income from intersegment loans –0– –0– –0– –0– 159 Operating expenses 3,914 1,612 916 579 16 Interest expense 61 16 51 31 87 Tangible assets 1,291 2,986 314 561 104 Intangible assets 72 361 –0– 48 –0– Intersegment loans –0– –0– –0– –0– 664 Ecru does not allocate its $1,250,000 in common expenses to the various segments. Perform testing procedures to determine Ecru’s reportable operating segments.

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....

1 answer below »

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	$6,319	$2,144	$636	$347	–0–
Intersegment transfers	106	131	96	108	–0–
Interest income from
outside parties	–0–	19	6	–0–	$27
Interest income from
intersegment loans	–0–	–0–	–0–	–0–	159
Operating expenses	3,914	1,612	916	579	16
Interest expense	61	16	51	31	87
Tangible assets	1,291	2,986	314	561	104
Intangible assets	72	361	–0–	48	–0–
Intersegment loans	–0–	–0–	–0–	–0–	664

Ecru does not allocate its $1,250,000 in common expenses to the various segments. Perform testing procedures to determine Ecru’s reportable operating segments.

Answered Same Day Dec 24, 2021

Solution

Robert answered on Dec 24 2021

129 Votes

SOLUTION:

SOLUTION.PDF

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....

Solution

Answer To This Question Is Available To Download

Related Questions & Answers

Submit New Assignment