Bennett Inc. is a publicly held corporation whose diversified operations have been separated into five industry segments. Bennett is in the process of preparing its annual financial statements for the year ended December 31, 20X5. The following information has been collected for the preparation of the segment reports required by FASB 131 (ASC 280).
BENNETT INC.
Selected Data
For the Year Ended December 31, 20X5
(in thousands)
Item Power Tools Fastening Systems Household Products Plumbing Products Security Systems
Sales to Unaffiliated Customers $32,000 $4,500 $4,800 $3,000 $2,000
Intersegment Sales $10,000 $5,500 $200 $1,000
Total Revenue $42,000 $10,000 $5,000 $4,000 $2,000
Cost of Goods Sold $30,000 $8,000 $4,500 $3,100 $1,700
Operating Profit $4,500 $1,000 ($600) $700 ($100)
Net Income $2,600 $800 ($750) ($100) ($200)
Segment Assets $50,000 $23,000 $17,000 $6,000 $4,000
Required:
1. Determine which of the operating segments are reportable segments for Bennett. Your determination should include all required tests and the results of those tests for each of Bennett’s five segments