Question - Cineplex corporation is a diversified company that operates in five different industries: A, B, C, D, and E. The following information relating to each segment is available for 2013.
Sales revenue: A= 40000, B= 75000, C= 580000, D= 35000, E= 55000. Cost of goods sold: A= 19000, B= 50000, C= 270000, D= 19000, E= 30000. operating expenses: A= 10000, B= 40000, C= 235000, D= 12000, E= 18000. total expenses: A= 29000, B= 90000, C= 505000, D= 31000, E= 48000. operating profit(loss): A= 11000, B=(15000), C= 75000, D= 4000, E= 7000. identifiable assets: A= 35000, B= 80000, C= 500000, D= 65000, E= 50000.
Sales of segments B and C included intersegment sales of $20000 and $100000 respectively.
Instructions:
(a) Determine which of the segments are reportable based on the:
(1) revenue test
(2) operating profit (loss) test
(3) identifiable asset test
(b) Prepare the necessary disclosures required by GAAP.