Accounting

Determination of reportable segments, disclosures,

reconciliation to consolidated amounts. Auto plus International is a publicly traded

company that manufactures and distributes a number of products for use within the automobile

industry. Major products are categorized as follows:

A. Automobile collision repair equipment

B. Automobile battery and starter parts

C. Automobile seating and safety belts

D. Automobile paints and trim parts

E. Automobile tire retreading equipment

F. Miscellaneous automobile products

The chief operating decision maker for the entity uses information organized by product

groups for purposes of evaluating performance and allocating resources. Current-year intersegment transactions can be summarized as follows:

Selling Buying Cost of Selling Amount included in

Segment Segment Sales Price ending inventory of

Buying Segment

Miscellaneous Products Battery and Starter Parts $2,540,000 $3,556,000 $420,000

Paint and Trim Parts Collision Repair Equipment 4,500,000 5,400,000 720,000

Seating and Safety Collision Repair Equipment 1,650,000 2,200,000 440,000

For the current year ended December 31, amounts allocated to the segments are as follows:

Revenues General

Including Cost and

Intersegment of administrative total long lived

Activity Sales expenses assets assets

Segment

A $24,840,000 $17,560,000 $ 2,480,000 $ 45,720,000 $ 34,250,000

B 6,470,000 4,250,000 1,120,000 14,780,000 10,100,000

C 13,850,000 7,560,000 1,840,000 37,500,000 21,500,000

D 25,500,000 18,650,000 4,570,000 47,800,000 32,000,000

E 4,780,000 3,100,000 980,000 13,950,000 8,540,000

F 8,650,000 4,320,000 2,130,000 16,570,000 9,870,000

Corporate 6,750,000 0 4,730,000 29,860,000 15,500,000

$90,840,000 $55,440,000 $17,850,000 $206,180,000 $131,760,000

The products of the entity are sold throughout the world. The percentage of revenues from

external customers (excluding corporate revenues) and long-lived assets (including corporate

assets) traceable to various geographic areas are as follows:

Percentage of United Italy Germany Mexico All other

United States Kingdom Foreign

All Other Foreign

External sales

Traceable to: 51% 20% 10% 5% 9% 5%

Long-lived assets

Traceable to: 54 21 8 4 10 3

1. Determine which of the segments are considered to be reportable and whether the guidelines

regarding the number of reportable segments have been satisfied.

2. Given the available information, prepare all of the necessary schedules and disclosures

regarding the entity’s segments, geographical areas, and reconciliations to consolidated

amounts.