Intermediate accounting by robles empleo ch 9 answers 2008

Minimum required operating result profit or loss 2,000,000 Reportable segments are A, B, C and E... 9-4 Minimum operating result profit or loss P1,100,000Reportable segments based on the

9.1 Angel Company

Angel Company Income Statement For the Quarter Ended October 31, 2007 Net sales (30% x 9,000,000) P 2,700,00

0

0 Gross profit (38% x 2,700,000) P 1,026,00

0

Profit from Continuing Operations P 756,000

Net Profit from Continuing Operations P 514,080 Discontinued Operations, net of income tax savings of

)

*Operating Expenses:

Variable = 30% x 600,000 P180,000 Fixed = (960,000 – 600,000) /4 90,000

9.2 Galaxy Company

Galaxy Company Income Statement For the Month of October 2006

Cost of goods sold:

Merchandise Inventory, October 1 P 280,000

Total goods available for sale 495,000 Merchandise inventory, October 31 372,600

General and administrative expenses (19,000)

9.3 Blue Bay

Considering the criteria, Segment D is not qualified because majority of its revenue comes from transactions with other segments

Minimum required operating result (profit or loss) 2,000,000

Reportable segments are A, B, C and E The 75% test has also been met (61M/66M is 92%)

9-4 Minimum operating result (profit or loss) P1,100,000

Reportable segments based on the above test are B, D and E

9.4 Polygon Corporation

Minimum required revenues P3,275,000

Minimum required operating profit 580,000

Minimum required identifiable assets 6,800,000

Identified reportable segments, based on any of the above tests: A, B, C, D and E

Multiple Choice Interim Reporting

MC14 C 320,000 X ¼ = 80,000

MC15 A End of January = 200,000 + 50,000 – 192,000 = 58,000

End of February = 58,000 + 380,000 – 408,000 = 30,000 End of March = 30,000 + 704,000 – 604,000 = 130,000 MC16 C (600,000 x ½) + (1,200,000 x ½) = 900,000

MC19 A (25,000,000 X 10%) – (10,000,000 X 5%) = 2,000,000

MC20 D (45,000,000 X 10%) – (20,000,000 X 5%) = 3,500,000

Segment Reporting

MC8 B

MC11 C 10% (1,000,000 + 300,000)

MC12 D 500,000 – 225,000 – (240,000 X 500,000/1,500,000) MC13 A 2,000,000 – 900,000 – (3,000,000 X 2M/10M)

MC14 C 10% (153,000,000 – 140,000,000)

MC15 B 4,000,000 – 2,200,000 – (1,200,000 X

1,800,000/3,000,000)=1,080,000