otal assets 80,000 Current liabilitie
Easy Company provided the following statement of financial position at year-end and income statement for the current year:
Current assets 130,000
Property, plant and equipment 500,000
Investment in associate 70,000
Total assets 80,000
Current liabilities 90,000
Noncurrent liabilities 60,000
Share capital 400,000
Total liabilities and equity 800,000
Revenue 1,800,000
Cost of goods sold -1,200,000
Gross profit 600,000
Other income 60,000
Distribution cost -200,000
Administrative expenses -100,000
Other expenses -50,000
Finance cost -60,000
Share in profit of associate 10,000
Income before tax 260,000
Income tax expense -90,000
Net income 170,000
* The entity is organized for management purposes into three major operating segments, namely furniture, stationery and computer products. There are other smaller operating segments.
External sales
Furniture 800,000
stationary 500,000
computer products 400,000
other segment 100,000
intersegment sales
Furniture 200,000
stationary 150,000
computer products 50,000
other segments 0
*the cost of goods sold, distribution cost, administrative expenses and finance cost can be allocated as 50% to furniture, 25% to stationery, 20% to computer products, and 5% to other segments.
*The cost of sales related to intersegment sales amounted to P240,000 to be allocated as 50% to furniture, 40% to stationery, and 10% to computer products.
*The segment assets and liabilities are as follows:
Furniture
Current asset 80,000
Property, plant and equipment 300,000
Good will 60,000
Total asset 440,000
current liabilities 45,000
noncurrent liabilities 30,000
total liabilities 75,000
Stationary
Current asset 40,000
Property, plant and equipment 100,000
Good will 30,000
Total asset 170,000
current liabilities 30,000
noncurrent liabilities 20,000
total liabilities 50,000
Computer products
Current asset 5,000
Property, plant and equipment 85,000
Good will 10,000
Total asset 100,000
current liabilities 8,000
noncurrent liabilities 7,000
total liabilities 15,000
others
Current asset 2,000
Property, plant and equipment 3,000
Good will 0
Total asset 5,000
current liabilities 1,000
noncurrent liabilities 2,000
total liabilities 3,000
The remaining assets and liabilities are general corporate assets and liabilities identified with the entity as a whole.
*The other income and other expenses are not allocated to the operating segments as a measure of profit or loss.
*The chief operating decision maker does not allocate income tax expense to reportable segments as a measure of profit or loss.
Required:
- Prepare the disclosures required for operating segments.
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