Question - Segment Interim Reporting:
Ridge Company is in the process of determining its reportable segments for the year ended December 31, 2012. As the person responsible for determining this information, you gather the following information:
|
Operating Segments
|
Sales to External Customers
|
Intersegment Sales and Transfers
|
Segment Profit (Loss)
|
Segment Assets
|
|
A
|
$1,000
|
$80
|
($40)
|
$400
|
|
L
|
400
|
20
|
(43)
|
80
|
|
M
|
320
|
-
|
8
|
160
|
|
R
|
1,420
|
-
|
16
|
740
|
|
S
|
160
|
40
|
(9)
|
100
|
|
Z
|
180
|
120
|
60
|
240
|
Required:
a) Using the appropriate tests, determine which of the industry segments listed above are reportable for 2012. Show your supporting computations in good form.
b) Indicate whether or not Ridge's reportable segments satisfy the 75 percent test. Show your supporting computations in good form.