Instructions: Perform all quantitative tests for segment reportability. Show all calculatons within the cells of this worksheet (no hard coding). Make sure that you properly label each test.
HedgeCo Segment Data
Income By Segment123456Totals
Revenues        
 Sales-External$102,787$278,544$471,573$298,972$501,236$66,447$1,719,559
 Sales-Internal$37,904$30,037$79,406$47,717$22,498$54,140$271,702
 Interest Income$2,704$3,982$1,763$3,458$4,411$3,655$19,973
Total Revenues$143,395$312,563$552,742$350,147$528,145$124,242$2,011,234
Expenses        
 Cost of Sales$3,798$2,193$6,250$3,501$1,606$7,055$24,403
 Marketing$6,533$3,208$12,900$3,755$2,788$5,322$34,506
 Interest Expense$1,489$1,143$3,323$1,984$694$2,256$10,889
Total Expenses $11,820$6,544$22,473$9,240$5,088$14,633$69,798
 Segment Profit$131,575$306,019$530,269$340,907$523,057$109,609$1,941,436
Assets $205,574$557,088$471,573$298,972$1,002,472$66,447$2,602,126

 

 

 

 

Instructions: You are to prepare a list of the type of information that should appear in an interim report for HedgeCo as of 11/1/2013. I strongly suggest that you use FASB 131 as a primary source. The list should be prioritized by reasoning that is driven primarily by case facts. The assumptions should appear lower in the list.
Type I Data
#ItemReasoning for selection (even if it is an assumption)
1  
2  
3  
4  
5  
6  
7  
8  
9  
10  
Type II Data
#ItemReasoning for selection (even if it is an assumption)
1  
2  
3  
4  
5  
6  
7  
8  
9  
10  
Type III Data
#ItemReasoning for selection (even if it is an assumption)
1  
2  
3  
4  
5  
6  
7  
8  
9  
10  

 

Instructions: One of HedgeCo's subsidiaries operates in a foreign country. The financial statements must be translated into U.S. dollars for financial reporting purposes. This entity has operations that are largely independent of HedgeCo (parent). Using the appropriate method, translate the financial statements into U.S. dollars.
Current Exchange Rates1.50
Historical Rates (Equity)0.75
Average Rate1.10
  
BALANCE SHEET 
12/31/2013FC
Assets
Cash6000.00
Accounts Receivable2000.00
Land10200.00
Building (net)30000.00
Accumulated Depreciation-30000.00
Total Assets18200.00
  
Liabilities 
Accounts Payable100.00
Mortgage Payable10000.00
  
Equity 
Common Stock100.00
Retained Earnings8000.00
  
Total Liabilities & Equity18200.00
  
INCOME STATEMENT 
Revenues50000.00
Operating Expenses (net depreciation)-25000.00
Depreciation-5000.00
Net Income20000.00
  
  • 9 years ago
A++ Answer
NOT RATED

Purchase the answer to view it

blurred-text
  • attachment
    solution_55.xlsx