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    test to determine which segments are separately reportable

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    Fireside Corporation is organized into four segments. The internal reporting system generated the following segment information:

    Revenues from outsiders Intersegment Transfers Operating Expenses
    Cards 1,200,000 100,000 900,000
    Calendars 900,000 200,000 1,350,000
    Clothing 1,000,000 0 700,000
    Books 800,000 50,000 770,000

    *see attached*
    The company incurred additional operating expenses (of a general nature) of $700,000.
    What is the profit or loss of each of these segments? Perform the profit or loss test to determine which of these segments is separately reportable.

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    Solution Summary

    Computation in Excel plus comments about how the tests work are provided.