The Following Information Was Obtained from the Clovis Company Required:
A

question 17

Essay

The following information was obtained from the Clovis Company:
$\begin{array}{lrrr}\text { Operating } & & \text { Segment } & \text { Profit } \\\text { Segment } & \text { Revenue } & \text { Assets } & \text { (Loss )} \\ \mathrm{A} & \$ 640 & \$ 520 & \$ 88 \\\mathrm{~B} & 124 & 120 & 32 \\\mathrm{C} & 760 & 680 & 40 \\\mathrm{D} & 160 & 240 & (8) \\\mathrm{E} & 32 & 64 & (4) \\\mathrm{F} & 80 & 96 & 16 \\\mathrm{G} & 480 & 400 & 16 \\\mathrm{H} & \underline{120}& \underline{160} & \underline{(48})\\&\$2,396&\$2,280&\$132\end{array}$
Required:
a. Using the revenue test, which segments should be separately reported?
b. Using the asset test, which segments shou'd be separately reported?
c. Using the profit (loss) test, which segments should be separately reported?

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Definitions:

Book Value

The net value of a company's assets minus its liabilities, often used as an estimate of a company's value if it were to be liquidated.

Market Price

The ongoing trading price for assets or services available in a market setting.

Retention Ratio

The percentage of a company's net income that is retained rather than being paid out as dividends, indicating reinvestment back into the business.

Net Income

The total profit of a company after all expenses and taxes have been subtracted from revenues.