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Donnegan Company reported operating expenses of $365,000 for 2013. The following

ID: 2376949 • Letter: D

Question

Donnegan Company reported operating expenses of $365,000 for 2013. The following data were extracted from the company

Donnegan Company reported operating expenses of $365,000 for 2013. The following data were extracted from the company's financial records: On a statement of cash flows for 2013, using the direct method, cash payments for operating expenses should be: On January 15, 2013, Vancey Company paid property taxes on its factory building for the calendar year 2013 in the amount of $840,000. In the first week of April 2013, Vancey made unanticipated major repairs to its plant equipment at a cost of $2,100,000. These repairs will benefit operations for the remainder of the calendar year. How should these expenses be reflected in Vancey's quarterly income statements? Presented below are four segments that have been identified by Haley Productions: For which of the segments would information have to be disclosed in accordance with professional pronouncements? Segments A, B, C, and D Segments A and D Segments A and B Segments A, B, and C

Explanation / Answer

$401,000.---------correct answer

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3/31/11            6/30/11           9/30/11          12/31/11

a.      $140,000         $606,667           $606,667         $606,667---------

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Presented below are four segments that have been identified by Haley Productions:

                             Total Revenue             Operating                             

   Segments           (Unaffiliated)            Profit (Loss)     Identifiable Assets

          A                     $255,000                 $30,000                  $900,000

          B                       600,000                 (55,000)                    800,000

         C                       225,000                     6,000                    450,000

         D                         90,000                     4,000                    225,000

For which of the segments would information have to be disclosed in accordance with professional pronouncements?


b.   Segments A, B, and C-----------correct answer

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