On Januar View ectmheducationcomflowconnecthtml Saved Help R

On Januar View ectmheducation.com/flow/connecthtml Saved Help Required information The following information applies to the questions displayed below) Following is financial information describing the six operating segments that make up Fairfield, Inc. (in thousands) Red Green PinkB Sales to outside parties Intersegment revenues Salary expenae Rent expense Interesat expease 11, 034 035 53 332 ackite 11122 39 125 335 115 109) (87) Consider the following questions independently None of the six segments has a primarily financial nature a. What minimum revenue amount must anyy (Enter your answer in dollars but not in thousands.) ed di 12 S4af 4EENeat >

Solution

Part B

Yes as it will encompass more than 75% in agregate

Part C

$ 1834 + $ 835 + $ 537 + $ 332 + $ 144 + $ 122 = $ 3804 (the image is blurred in the question, check if the figures are correct)

Major disclosure is required when minimum of 10% of total sales is from one customer. Thus major customer disclosure would be when sales exceed 3804*20% = $ 380.40 of a customer

Part D

Net profit from all the segments would be: 1097+472+163-117-245+331 = $ 1701 . The seperate disclosure would be required when min. profit exceeds 10% of $ 1701 = $ 170.10 (in thousands)