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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
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.
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