Globecorp International Has Six Operating Segments, the Details of Which

Essay

Globecorp International has six operating segments, the details of which are shown below. All figures shown are in thousands of dollars.
$\begin{array}{|l|r|r|r|}\hline \text { OperatingSegment } & \text { Revenues } & \text { Profits } & \text { Assets } \\\hline \mathrm{A} 01 & \$ 6,000 & \$ 1,050 & \$ 12,000 \\\hline \mathrm{B} 02 & \$ 4,800 & \$ 840 & \$ 10,500 \\\hline \text { C03 } & \$ 3,600 & \$ 720 & \$ 7,500 \\\hline \text { D04 } & \$ 1,800 & \$ 330 & \$ 4,500 \\\hline \text { E05 } & \$ 2,550 & \$ 405 & \$ 4,200 \\\hline \text { F06 } & \$ 900 & \$ 135 & \$ 1,800 \\\hline \text { Total } & \$ 19,650 & \$ 3,480 & \$ 40,500\\\hline\end{array}$ Using ONLY the operating profit test, determine which of the operating segments require separate disclosures.
Total profits of those segments making a profit add up to $3,480 ($1,050 + $840 + $720 + $330 + $405 + $135). Total losses = $0. Greater = $3,480  10% = $348