Question

Following is financial information describing the six operating segments that make up Fairfield, Inc. (in thousands):

	Segments
	Red				Blue				Green				Pink				Black				White
Sales to outside parties	$	1,827			$	828			$	530			$	325			$	137			$	115
Intersegment revenues		32				107				125				0				32				318
Salary expense		630				395				418				328				333				78
Rent expense		155				182				97				108				58				47
Interest expense		81				75				98				65				30				21
Income tax expense (savings)		157				103				77				(102	)			(80	)			0

Consider the following questions independently. None of the six segments has a primarily financial nature.

d. Now assume each of the six segments has a profit or loss (in thousands) as follows. Based on these figures, which warrants separate disclosure? (Select all that apply.)

Red	$	1,090
Blue		465
Green		156
Pink		(110	)
Black		(238	)
White		324

rev: 04_06_2018_QC_CS-123540

Check All That Apply

• RedRed

• BlueBlue

• GreenGreen

• PinkPink

• BlackBlack

• WhiteWhite

Answer 1