Required information The following information applies to th

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): Seqments Red Blue Pink Black White $1,834835 537 $ 332$144 12:2 325 85 54 28 Green Sales to outside parties Intersegment revenues Salary expense Rent expense Interest expense Income tax expense (savings) 39 637 162 114 402 189 82 110 132 425 104 105 84 335 115 72 (109) 39 65 (87) 340 164 Consider the following questions independently. None of the six segments has a primarily financial nature a. What minimum revenue amount must any one segment generate to be of significant size to require disaggregated disclosure? (Enter your answer in dollars but not in thousands.) inimum revenues

Solution

a.

What minimum revenue amount must any one segment generate to be of significant size to require disaggregated disclosure

Answer:

For finding out the minimum revenue we need to calculate the total revenue for the all segment of the company should be find out

From this calculation one can identify that which division is bigger or larger in the terms of revenue

Now we will make calculation for the revenue of each department/Segment as under

Red

Blue

Green

Pink

Black

white

Total

Sales

1834

835

537

332

144

122

3804

Add: Intersegment sale

39

114

132

0

39

325

649

Total Sales

1873

949

669

332

183

447

4453

Total revenue is 4453

So Segment should have 10% or more share in total revenue to become reportable segment accordingly minimum revenue amount must any one segment generate to be of significant size to require disaggregated disclosure

= 4453 * 10%

= 445.3

Fairfield should disclose the red , Blue Green because they have more then 10% sales

	Red	Blue	Green	Pink	Black	white	Total
Sales	1834	835	537	332	144	122	3804
Add: Intersegment sale	39	114	132	0	39	325	649
Total Sales	1873	949	669	332	183	447	4453