Required information [The following information applies to the questions display
ID: 2398360 • Letter: R
Question
Required information [The following information applies to the questions displayed below.] Following is financial information describing the six operating segments that make up Fairfield, Inc. (in thousands): Seqments Red Blue Pink Black White $1,834835 537 $ 332$144 12:2 325 85 54 28 Green Sales to outside parties Intersegment revenues Salary expense Rent expense Interest expense Income tax expense (savings) 39 637 162 114 402 189 82 110 132 425 104 105 84 335 115 72 (109) 39 65 (87) 340 164 Consider the following questions independently. None of the six segments has a primarily financial nature a. What minimum revenue amount must any one segment generate to be of significant size to require disaggregated disclosure? (Enter your answer in dollars but not in thousands.) inimum revenuesExplanation / Answer
a.
What minimum revenue amount must any one segment generate to be of significant size to require disaggregated disclosure
Answer:
For finding out the minimum revenue we need to calculate the total revenue for the all segment of the company should be find out
From this calculation one can identify that which division is bigger or larger in the terms of revenue
Now we will make calculation for the revenue of each department/Segment as under
Red
Blue
Green
Pink
Black
white
Total
Sales
1834
835
537
332
144
122
3804
Add: Intersegment sale
39
114
132
0
39
325
649
Total Sales
1873
949
669
332
183
447
4453
Total revenue is 4453
So Segment should have 10% or more share in total revenue to become reportable segment accordingly minimum revenue amount must any one segment generate to be of significant size to require disaggregated disclosure
= 4453 * 10%
= 445.3
Fairfield should disclose the red , Blue Green because they have more then 10% sales
Red
Blue
Green
Pink
Black
white
Total
Sales
1834
835
537
332
144
122
3804
Add: Intersegment sale
39
114
132
0
39
325
649
Total Sales
1873
949
669
332
183
447
4453
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