Main Manufacturing Corporation Reported Consolidated Revenues of $50,000,000 on Its

question 18

Multiple Choice

Main Manufacturing Corporation reported consolidated revenues of $50,000,000 on its income statement for 20X8.The management of the corporation identified 3 industry segments,M,N,and O.These segments had the following intersegment sales and transfers during 20X8:
For Main Manufacturing Corporation,the revenue test would be satisfied if any of its industry segments had revenue equal to or greater than which of the following?

• A)$7,400,000
• B)$5,740,000
• C)$5,000,000
• D)$4,260,000

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Definitions:

Stock Dividend

A disbursement from a corporation to its shareholders, using shares as the medium instead of cash.

Stockholders' Equity

The ownership interest of shareholders in a corporation, represented by their share of the company's assets after all liabilities have been deducted.

Convertible Bonds

Bonds that can be converted into a predetermined number of the issuing company's shares at certain times during the bond's life, usually at the discretion of the bondholder.

Diluted Earnings Per Share

A metric that calculates a company's earnings per share (EPS) if all convertible securities were converted into common stock, often resulting in a lower EPS.