ACCT 557 Week 7 Homework Assignment
ACCT 557 Intermediate Accounting III
(DeVry Keller)
Problem 1:
Plastics Inc. is a company that operates in four different divisions. The following information relating to each segment is available for 2013. | ||||||||
| Sales revenue | Cost of goods sold | Operating expenses | Total expenses | Operating profit (loss) | Identifiable assets | ||
Bottles | $ 65,000 | $ 26,000 | $8,000 | $ 34,000 | $31,000 | $ 66,000 | ||
Containers | $ 95,000 | $ 62,000 | $ 48,000 | $ 110,000 | $ (15,000) | $ 80,000 | ||
Dollhouses | $ 620,000 | $ 353,000 | $140,000 | $ 493,000 | $ 127,000 | $ 640,000 | ||
Silverware | $18,000 | $ 8,000 | $ 6,500 | $14,500 | $3,500 | $36,000 | ||
Sales of segments Containers and Dollhouses included intersegment sales of $30,000 and $150,000, respectively. | ||||||||
Required: | ||||||||
Determine which of the segments are reportable based on the following: | ||||||||
Revenue Test |
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Operating profit (loss) test | ||||||||
Identifiable assets test | ||||||||
Problem 2:
The following information pertains to Walrus Inc. |
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Cash | $60,000 |
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Accounts receivable | 170,000 |
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Inventory | 100,000 |
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Plant assets (net) | 582,000 |
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Total assets | $912,000 |
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Accounts payable | $110,000 |
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Accrued taxes and expenses payable | 42,000 |
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Long-term debt | 120,000 |
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Common stock ($10 par) | 260,000 |
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Paid-in capital in excess of par | 50,000 |
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Retained earnings | 330,000 |
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Total equities | $912,000 |
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Net sales (all on credit) | $2,000,000 |
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Cost of goods sold | 1,400,000 |
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Net income | 120,000 |
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Required: Compute the following: (ignore Avg for balance sheet accounts)
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10 years ago
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