Task: Union Products has seven operating segments. Data on the segments are as follows:
Segments Segment
Segments Revenues Profit (Loss) Assets
Electronics $ 42,000 $ (8,600) $ 73,000
Bicycles 105,000 30,400 207,000
Sporting Goods 53,000 (4,900) 68,000
Home Appliances 147,000 23,000 232,000
Gas and Oil Equipment 186,000 11,700 315,000
Glassware 64,000 (19,100) 96,000
Hardware 178,000 38,600 194,000
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Total 775,000 71,100 1,185,000
Included in the $ 105,000 revenue of the bicycles segment are the sales of $ 25,000 made to the Sporting Goods segment.
Required :
a. Which segments are separately reportable.
b. Do the separately reportable segments include a sufficient portion of total revenue? Explain.