P24-2
Cineplex Corporation is a diversified company that operates in five different
industries: A, B, C, D, and E. The following information relating to each
segment is available for 2015.
ABCD
Sales revenue $40,000 $75,000 $580,000 $35,000 $55,000
Cost of goods sold 19,000 50,000 270,000 19,000 30,000
Operating expenses 10,000 40,000 235,000 12,000 18,000
Total expenses 29,000 90,000 505,000 31,000 48,000
Operating profit(loss) $11,000 $(15,000 ) $75,000 $4,000 $7,000
Identifiable assets $53,000 $80,000 $500,000 $65,000 $50,000
Sales of segments B and C included
intersegments sales of $20,000 and $100,000, respectively.
Instructions
(a) Determine which of the segments are
reportable based on the
(1) Revenue test
(2) Operating profit(loss) test.
(3) Identifiable assets test.
(b) Prepare the necessary
disclosure required by GAAP.
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