- Please Do Not Copy From Other Chegg Answers 1 (110.14 KiB) Viewed 34 times
PLEASE DO NOT COPY FROM OTHER answers ANSWERS
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PLEASE DO NOT COPY FROM OTHER answers ANSWERS
PLEASE DO NOT COPY FROM OTHER answers ANSWERS
Northern Chemicals, Inc., produces products in five separate lines of buisness: pharmaceuticals, paint and paint products, over-the-counter health products, vitamins, and beauty products. Each segment is accounted for separately, with a vice president in charge of each line of business. The results reported by each segment for the fiscal year 2021 were as follows: Health Pharmacy Vitamins 11,600,000 3,000,000 6,600,000 Sales revenue Cost of goods sold Operating expenses Total expenses Operating profit (loss) Beauty Paint 3,300,000 9,000,000 1,560,000 5,900,000 1,440,000 4,700,000 3,000,000 10,600,000 300,000 (1,600,000) 5,000,000 1,480,000 3,600,000 4,700,000 1,680,000 2,160,000 9,700,000 3,160,000 5,760,000 1,900,000 (160,000) 840,000 Identifiable assets 3,080,000 9,800,000 11,400,000 3,440,000 7,800,000 The sales of Health included intersegment sales of $80,000, and Pharmacy sales included intersegment sales of $400,000. Required: 1. Determine which of the segments are reportable based on the: a. Revenue test. b. Operating profit (loss) test. C. Identifiable assets test. 2. Prepare the necessary disclosures required by GAAP.
Northern Chemicals, Inc., produces products in five separate lines of buisness: pharmaceuticals, paint and paint products, over-the-counter health products, vitamins, and beauty products. Each segment is accounted for separately, with a vice president in charge of each line of business. The results reported by each segment for the fiscal year 2021 were as follows: Health Pharmacy Vitamins 11,600,000 3,000,000 6,600,000 Sales revenue Cost of goods sold Operating expenses Total expenses Operating profit (loss) Beauty Paint 3,300,000 9,000,000 1,560,000 5,900,000 1,440,000 4,700,000 3,000,000 10,600,000 300,000 (1,600,000) 5,000,000 1,480,000 3,600,000 4,700,000 1,680,000 2,160,000 9,700,000 3,160,000 5,760,000 1,900,000 (160,000) 840,000 Identifiable assets 3,080,000 9,800,000 11,400,000 3,440,000 7,800,000 The sales of Health included intersegment sales of $80,000, and Pharmacy sales included intersegment sales of $400,000. Required: 1. Determine which of the segments are reportable based on the: a. Revenue test. b. Operating profit (loss) test. C. Identifiable assets test. 2. Prepare the necessary disclosures required by GAAP.
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