Question

A company has five business units that may be reportable as business segments. Data for these entities is as follows:

	A	($000) B	C	D	E
Sales	$621	$853	$1,237	$2,832	$4,720
Profit	103	(218)	832	1.337	(583)
Assets	1,200	2,780	2,324	4,280	8,321

Using the table below, identify the threshold base for each category above and signify (yes/no) if each business segment is reportable by category.

	Segment Test:						Quantitative Thresholds
	($1,000s)	A	B	C	D	E		Profit	Loss
	Sales
	Profit
	Assets

Answer 1

Segment Test:						Quantitative Thresholds
($1,000s)	A	B	C	D	E		Profit	Loss
Sales	$621	$853	$1,237	$2,832	$4,720	$10,263
Profit	$103	($218)	$832	$1,337	($583)	$3,073	$2,272	($801)
Assets	$1,200	$2,780	$2,324	$4,280	$8,321	$18,905
Segment Test:						Quantitative Thresholds
($1,000s)	A	B	C	D	E		Profit	Loss
Sales	No	No	Yes	Yes	Yes	$1,026.30
Profit	No	Yes	Yes	Yes	Yes		$227.20	($80.10)
Assets	No	Yes	Yes	Yes	Yes	$1,890.50