Scribd Logo
Upload

Welcome to Scribd!

  • 358 views

    Grum Company

    Uploaded by

    VIRGIL KIT AUGUSTIN ABANILLA
    Grum Company reported total revenue of $50 million excluding $10 million of intersegment sales for 2013. Expenses were $47 million and net income was $3 million. Total assets for all operating segments as of December 31, 2012 were $45 million. For segment reporting purposes, the total amount of segment revenue to be reported is $60 million (total revenue of $50 million plus intersegment sales of $10 million).

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd

    Grum Company

    Uploaded by

    VIRGIL KIT AUGUSTIN ABANILLA
    358 views3 pages
    Grum Company reported total revenue of $50 million excluding $10 million of intersegment sales for 2013. Expenses were $47 million and net income was $3 million. Total assets for all operating segments as of December 31, 2012 were $45 million. For segment reporting purposes, the total amount of segment revenue to be reported is $60 million (total revenue of $50 million plus intersegment sales of $10 million).

    Original Description:

    Segment Reporting

    Copyright

    © © All Rights Reserved

    Available Formats

    DOCX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Grum Company reported total revenue of $50 million excluding $10 million of intersegment sales for 2013. Expenses were $47 million and net income was $3 million. Total assets for all operating segments as of December 31, 2012 were $45 million. For segment reporting purposes, the total amount of segment revenue to be reported is $60 million (total revenue of $50 million plus intersegment sales of $10 million).

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    358 views3 pages

    Grum Company

    Uploaded by

    VIRGIL KIT AUGUSTIN ABANILLA
    Grum Company reported total revenue of $50 million excluding $10 million of intersegment sales for 2013. Expenses were $47 million and net income was $3 million. Total assets for all operating segments as of December 31, 2012 were $45 million. For segment reporting purposes, the total amount of segment revenue to be reported is $60 million (total revenue of $50 million plus intersegment sales of $10 million).

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 3

    Grum Company, a public entity, is subject to the requirments of segment reporting.

    In the
    income statement for the year ended December 31, 2013, the entity reported revenue of
    50,000,000 excluding intersegment sales pf 10,000,000, expenses of 47,000,000 and net income
    of 3,000,000. Expenses included payroll costs of 15,000,000. The combined total assets of all
    operating segments on December 31, 2012 amounted 45,000,000.

    What total amount should be reported as segment revenue for purposes of reporting segment
    information?

    a. 50,000,000
    b. 60,000,000
    c. 40,000,000
    d. 3,000,000

    In the Financial Statements, the entity should disclose major customer data if sales to any single
    customer amount to at least

    a. 5,000,000
    b. 4,000,000
    c. 6,000,000
    d. 4,500,000

    External revenue reported by operating segments must be at least

    a. 22,500,000
    b. 30,000,000
    c. 33,750,000
    d. 37,500,000

    Eagle Company operates in several different industries. Total sales for the entity totaled 14,000,000 and
    total common costs amounted to 6,500,000 for the current year. For internal reporting purposes, the
    entity allocates common costs based on the ratio of a segment’s sales to total sales. Additional
    information regarding the different segments follows:

    Segment Contribution to total sales Costs specific to the segment

    1 25% 1,100,000

    2 12% 1,000,000

    3 31% 1,300,000

    4 23% 880,000

    5 9% 400,000

    What is the operating profit?


    a. 3,500,000
    b. 1,875,000
    c. 2,400,000
    d. 775,000

    Taylor Company, a public entity, assesses performance and makes operating decisions using the
    following information for the reportable segments:

    Total Revenue: 7,680,000

    Total Profit and Loss: 406,000

    The total profit and loss included intersegment profit of 61,000. In addition, the entity has 5,000
    of common costs for the reportable segments that are not allocated in reports provided to the
    chief operating decision maker. For purposes of segment reporting, what amount should be
    reported as segment profit?

    a. 340,000
    b. 345,000
    c. 401,000
    d. 406,000

    On March 15, 2013, Rex Company paid property taxes of 180,000 on the factory building for
    calendar year 2013. On April 1, 2013, the entity made 300,000 in unanticipated ordinary repairs
    to plant equipment. What total amount of these expenses should be included in the quarterly
    income statement ending June 30, 2013?

    a. 75,000
    b. 145,000
    c. 195,000
    d. 345,000

    The terms and conditions of employment with Pauline Company include entitlement to share in the staff
    bonus system, under which 5% of the profit for the year before charging the bonus is allocated to the
    bonus pool, provided the annual profit exceeds 50,000,000. The profit before accrual of any bonus for
    the year as a whole is 60,000,000. What amount should be recognized as bonus expense for the half
    year ended June 30, 2013?

    a. 1,500,000
    b. 3,000,000
    c. 2,000,000
    d. 0
    On July 1, 2013 Dolor Company incurred a casualty loss of 300,000. The net income for the full year
    ending December 31, 2013 is expected to be 5,000,000. In the income statement for the quarter ended
    September 30, 2013, what amount of casualty loss should be reported?

    a. 300,000
    b. 150,000
    c. 75,000
    d. 0

    You might also like