Exhibit 19-5
USE THE FOLLOWING INFORMATION FOR THE NEXT PROBLEM(S)

question 70

Multiple Choice

Exhibit 19-5
USE THE FOLLOWING INFORMATION FOR THE NEXT PROBLEM(S)
You are provided with the following information about Albermarle Corp. $\begin{array}{lr} \text { Income Statement Data } &\\ \text { Sales } &542 \\ \text { Operating Income } &38 \\ \text { Depreciation } &3 \\ \text { Interest Expense } &3 \\ \text {Pretax Income } &32 \\ \text {Income Taxes } &13 \\ \text { Net Income after tax } &19\\\\ \text { Balance Sheet Data } &\\ \text { Fixed Assets } &41\\ \text { Total Assets } &245\\ \text {Working Capital } &123\\ \text { Total Debt } &16\\ \text { Equity } &159\\\end{array}$
-Refer to Exhibit 19-5. Calculate the operating margin.

• A) 15.5%
• B) 5.6%
• C) 8.6%
• D) 10.6%
• E) 6.5%

Understand the criteria for combining operating segments for reporting purposes.

Discern the required financial disclosures for each operating segment.

Understand the significance of intersegment transactions for segment reporting.

Apply the tests (revenue, profit or loss, assets) to determine which segments must be disclosed separately.

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Definitions:

Reinforcer

is a stimulus, which, when following a behavior, increases the likelihood of that behavior being repeated.

Desired Behavior

Specific actions or responses that are sought after or encouraged in a particular context or situation.

Kaizen

A Japanese term for 'continuous improvement', often applied in business contexts to denote ongoing, incremental improvement strategies.

Reinforcement

In psychology, a consequence that strengthens an organism's behavior whenever that behavior is preceded by a specific antecedent stimulus.