The following excerpt is from the financial statements of a large Canadian manufacturer and provides segmented geogThe company reported that it was engaged principally in one line of business—processed food products—and that line represented more than 90% of consolidated sales. Information about the company business by geographic area is presented below. The company reported that there were no material amounts of sales or transfers between geographic areas or between affiliates, and no material amounts of Canadian export sales that year. raphic data:

Instructions 

a. Why does the company not also provide segmented information on its products? 

b. Why are revenues by geographic area important to disclose?

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Foreign Domestic United United Western Other Total Worldwide Kingdom States Europe $383,784 $209,354 $1,357,391 Sales $2,381,054 $547,527 $216,726 $3,738,445 Operating income 246,780 61,282 34,146 29,146 25,111 149,685 396,465 Identifiable assets 1,362,152 265,218 112,620 294,732 143,971 816,541 2,178,693 Capital expenditures 72,712 12,262 13,790 8,253 4,368 38,673 111,385 Depreciation 42,279 8,364 3,592 6,355 3,606 21,917 64,196 expense