Problem 24-2

P24-2. (Segmented Reporting) 3

Cineplex Corporation is a diversified company that operates in five different industries: A, B, C, D, and E. The following information relating to each segment is available for 2015. A B C D E Sales revenue $40,000 $?75,000? $580,000 $35,000 $55,000 Cost of goods sold 19,000 50,000? 270,000 19,000 30,000 Operating expenses 10,000 40,000? 235,000 12,000 18,000 Total expenses 29,000 90,000? 505,000 31,000 48,000 Operating profit (loss) $11,000 $(15,000) $?75,000 $?4,000 $?7,000 Identifiable assets $35,000 $?80,000? $500,000 $65,000 $50,000

Sales of segments B and C included intersegment sales of $20,000 and $100,000, respectively. Instructions (a) Determine which of the segments are reportable based on the: (1) Revenue test. (2) Operating profit (loss) test. (3) Identifiable assets test.

(b) Prepare the necessary disclosures required by GAAP.