Segment Reporting
Response to the following problem:
York Drug Company has two reportable operating segments, A and B. The 2010 condensed income statement for the entire company is as follows:
Sales $90,000
Cost of goods sold (50,000)
Gross profit $40,000
Operating expenses (18,000)
Income before income taxes $22,000
Income tax expense (8,800)
Net Income $13,200
Additional information:
1. Sales are made as follows: Segment A, $52,000; Segment B, $26,000; other segments, $12,000 of the total.
2. Cost of goods sold for each segment is as follows: Segment A, $30,000; Segment B, $12,500; other segments, $7,500.
3. Operating expenses are identified with the segments as follows: Segment A, $10,000; Segment B, $4,500; other segments, $3,500. There are no general corporate expenses.
4. The company has $110,000 total assets as of December 31, 2010. These assets are assigned to the segments as follows: Segment A, $49,500; Segment B, $38,500; other segments, $22,000. There are no general corporate assets.
Required:
Prepare a schedule that reports on the 2010 revenues, profit, and assets of Segments A and B and the other segments of the York Drug Company.