1. Operating profit test
Pong industries operations involve four operating segments. A,B,C and D. During the past year, the operating profit (loss) of each segment was
Segment Operating profit (loss)
A $(600)
B 100
C 900
D (700)
Required:
Applying the operating profit or loss test, determine which of the segments are reportable segments?
2. Revenue test
Mane company operates in five identifiable segments, V,W,X,Y, and Z. during the past year, sales to unaffiliated customers and intersegment sales for each segment were as follow
Segment Sales to nonaffiliates Intersegment sales Total sales
V $2,000 $ 400 $2,400
W 280 20 300
X 100 600 700
Y 1,100 0 1,100
Z 350 25 375
$3,830 $1,045 $$4,875
Applying the revenue test, determine which of the segments are reportable segments