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14 September, 14:21

Lion Lyle Co. is a public company and reports operating segment information. The following information is available for the current reporting year: Sales to Operating ExternalIntersegment Sales lo Segment Revenues Customers $ 70,000 $ 30,000 $100,000 Monk 22,000 4,000 26,000 Nevi 8,000 16,000 24,000 Combined $100,000 $ 50,000 150,000 Elimination (50,000) (50,000) Consolidated $100,000 $100,000 Which operating segment (s) should be reportable segments?

1. None

2. Lion only

3. Lion and Monk only

4. Lion, Monk and Nevi

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Answers (1)
  1. 14 September, 16:35
    0
    The operating segment that should be reportable segments are Lion, Monk and Nevi. The right answier is 4

    Explanation:

    In order to know which operating segment should be reportable segments we need to make the following calculations for each segment:

    Lion = 100000/150000% = 67%

    Monk = 26000/150000%=17%

    Nevi = 24000/150000%=16%

    The Segment will be reporting segement if combined income is more than 10% of total combined revenue.

    Becasue all are above 10% that mean that all will be reportable segments.

    Therefore, The operating segment that should be reportable segments are Lion, Monk and Nevi
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