Problem: KK&J Inc. is a diversified company whose operations are conducted in five product lines (A, B, C, D, and E).A B C D E Sales $ 40,000 $ 85,000 $ 600,000 $ 50,000 $ 48,000 Operating profit (loss) 8,000 (11,000) 81,000 9,000 3,000 Identifiable assets 30,000 48,000 320,000 45,000 95,00 Segment data is to be included in the December 31, 2018 annual report. Financial information for each segment is as follows:
- In addition to the identifiable assets listed, the general corporate office has assets of $90,000 on December 31, 2018, and incurred unallocated amounts related to corporate headquarters of interest expense of $1,000 and depreciation expense of $2,000.
- Included in the sales of segment E are $15,000 of sales made to segment C during the year. None of these goods remain in the ending inventory of segment C on December 31, 2018 (and therefore, no adjustment for the elimination of intersegment profit is needed). There were no capital expenditures during the year.
- No single customer accounted for more than 10% of sales. Prepare a reconciliation of the segment data to the consolidated data for 1) Revenue, 2) Profit & Loss, and 3) Assets