Practice Problem 24-1 Flounder Corporation, a publicly traded company, is prepar

Question

Practice Problem 24-1 Flounder Corporation, a publicly traded company, is preparing the financial data which it will issue to its stockholders and the Securities and Exchange Commission (SEC) for the fiscal year ending December 31, 2017. Your job as a member of the accounting team is to help determine the appropriate disclosures and any other potential year- end adjustments. You have collected the following information 1. Flounder is involved in four separate industries. The following information is available for each of the four industries. Flounder wonders which segments are reportable. Operating Total Operating Identifiable Segment Revenue Profit(Loss) Assets Gator $331,700 168,300 42,000 37,300 $120,400 20,200 $30,400 3,100 Tiger Seminole 46,300 (3,900) Longhorn18,300 2,000 205,200 $31,600 5579,300 On January 23, 2018, a strike was called at one of Flounder's largest plants, which halted 30% of its production. As of today (February 13, the strike has not been settled. 2. 3. On January 18, 2018, one of the three major plants of the client burned down. 4. On February 3, 2018, one of Flounder's customers declared bankruptcy. At December 31, 2017, this company owed Flounder $14,500, of which $3,300 was paid in January 2018. On February 1, 2016, the board of directors adopted a resolution accepting the offer of an investment banker to guarantee the marketing of $1,400,000 of preferred stock. 5. Moving ahead to the first quarter of 2018, your team has compiled the following summarized revenue and expense data for the first quarter of the year. Sales revenue Cost of goods sold Variahle cellinn exnence $58,300 36,100 ann

Explanation / Answer

The company's revenue and expenses would be reported as follows on its quarterly report prepared for the first quarter of 2018 Sales revenue $58,300 Cost of goods sold ($36,100) Gross profit $22,200 Other Expenses: Variable selling expenses $900 Fixed selling expenses $3,200 Advertisement expenses $1,700 Total Expenses $5,800 Net profit $16,400

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