Faru Co Identified Five Industry Segments: (1) Plastics, (2) Metals, (3)

Essay

Faru Co. identified five industry segments: (1) plastics, (2) metals, (3) lumber, (4) paper, and (5) finance. Each of these segments had been consolidated appropriately by the company in producing its annual financial statements. Information describing each segment is presented below (in thousands). $\begin{array}{lrrrrr}&\text { Plastics}& \text { Metals}& \text { Lumber } &\text { Paper }& \text { Finance }\\\text { Sales to outside parties } & \$ 8,215 & \$ 2,787 & \$ 827 & \$ 451 & \$ 0 \\\text { Intersegment revenues transfers } & 138 & 170 & 125 & 140 & 0 \\\text { Interest income from outside parties } & 0 & 25 & 8 & 0 & 242 \\\text { Interest income from intersegment } & & & &\\{\text { loans }} & 0 & 0 & 0 & 0 & 207 \\\text { Operating expenses } & 5,088 & 2,096 & 1,191 & 753 & 21 \\\text { Interest expense } & 79 & 21 & 66 & 40 & 113 \\\text { Tangible assets } & 1,678 & 3,882 & 408 & 729 & 135 \\\text { Intangible assets } & 94 & 469 & 0 & 62 & 863\end{array}$
-Prepare the revenue test and determine which of these segments was separately reportable.
Revenues include sales to outside parties, intersegment revenues transfers, and interest income.