Reference no: EM13485357

1. Operating profit test

Pong industries operations involve four operating segments. A,B,C and D. During the past year, the operating profit (loss) of each segment was

Segment                                 Operating profit (loss)

A                                             $(600)

B                                             100

C                                             900

D                                             (700)

Required:

Applying the operating profit or loss test, determine which of the segments are reportable segments?

2. Revenue test

Mane company operates in five identifiable segments, V,W,X,Y, and Z. during the past year, sales to unaffiliated customers and intersegment sales for each segment were as follow

Segment              Sales to nonaffiliates                      Intersegment sales         Total sales

V                             $2,000                                                  $ 400                       $2,400

W                               280                                                        20                         300

X                                100                                                       600                         700

Y                               1,100                                                       0                           1,100

Z                               350                                                          25                              375

                                $3,830                                                    $1,045                     $$4,875        

Applying the revenue test, determine which of the segments are reportable segments