Portfolio Mod 8
Sleek Solutions (Not rated)
(Not rated)
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 Segment | 1 | 2 | 3 | 4 | 5 | 6 | Totals | |
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 | ||
# | Item | Reasoning for selection (even if it is an assumption) |
1 | ||
2 | ||
3 | ||
4 | ||
5 | ||
6 | ||
7 | ||
8 | ||
9 | ||
10 | ||
Type II Data | ||
# | Item | Reasoning for selection (even if it is an assumption) |
1 | ||
2 | ||
3 | ||
4 | ||
5 | ||
6 | ||
7 | ||
8 | ||
9 | ||
10 | ||
Type III Data | ||
# | Item | Reasoning 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 Rates | 1.50 |
Historical Rates (Equity) | 0.75 |
Average Rate | 1.10 |
BALANCE SHEET | |
12/31/2013 | FC |
Assets | |
Cash | 6000.00 |
Accounts Receivable | 2000.00 |
Land | 10200.00 |
Building (net) | 30000.00 |
Accumulated Depreciation | -30000.00 |
Total Assets | 18200.00 |
Liabilities | |
Accounts Payable | 100.00 |
Mortgage Payable | 10000.00 |
Equity | |
Common Stock | 100.00 |
Retained Earnings | 8000.00 |
Total Liabilities & Equity | 18200.00 |
INCOME STATEMENT | |
Revenues | 50000.00 |
Operating Expenses (net depreciation) | -25000.00 |
Depreciation | -5000.00 |
Net Income | 20000.00 |
- 9 years ago
A++ Answer
NOT RATED
Purchase the answer to view it
- solution_55.xlsx