SEGMENT AND INTERIM FINANCIAL REPORTING
SOLUTIONS TO EXERCISES
10% of combined revenues (total sales) = $68,800,000
The food service industry, copper mine, and chemical industry are
reportable segments under the revenue test because they each have revenue in
excess of $68,800,000.
Operating profit test:
10% of the greater of the combined operating profit of
all industries having operating profit ($88,500,000)
operating loss of all industries having operating losses ($25,500,000).
The food service industry, copper mine, chemical industry, and
agricultural products industry are reportable segments because they each have
operating profit or loss in excess of $8,850,000.
10% of combined assets ($638,000,000 total assets less
$33,000,000 corporate assets) = $60,500,000.
The food service industry and chemical industry are reportable segments
because they have assets in excess of $60,500,000.