Which of the industry segments listed are reportable

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Question - Segment Interim Reporting:

Ridge Company is in the process of determining its reportable segments for the year ended December 31, 2012. As the person responsible for determining this information, you gather the following information:

Operating Segments

Sales to External Customers

Intersegment Sales and Transfers

Segment Profit (Loss)

Segment Assets

A

$1,000

$80

($40)

$400

L

400

20

(43)

80

M

320

-

8

160

R

1,420

-

16

740

S

160

40

(9)

100

Z

180

120

60

240

Required:

a) Using the appropriate tests, determine which of the industry segments listed above are reportable for 2012. Show your supporting computations in good form.

b) Indicate whether or not Ridge's reportable segments satisfy the 75 percent test. Show your supporting computations in good form.

Reference no: EM131807957

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