Question

Required information

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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.

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.)

Answer 1

(a)
Particulars			Segments (In thousands)
	Red	Blue	Green	Pink	Black	White	Totals (In thousands)
Sales to outside Parties	$ 1,827	$ 828	$ 530	$ 325	$ 137	$ 115	$ 3,762
Intersegments Revenues	32	107	125	0	32	318	614
							$ 4,376
Every segment should have 10% or more share in total revenue to become a reportable segment		Minimum Revenue (in Dollars)      = $ 4,376,000 x 10%     = $ 437,600