The following income statement and balance sheet information is available for the operating segments of Bogart, Inc.

                

The segments do not sell goods or services to one another. The Flynn and Cagney segments have similar economic characteristics, products, processes, customers, distribution method, and regulatory environments.

Required:
  1. Explain why U.S. GAAP requires a company to disclose information about its business segments.
  2. How does a firm define an operating segment under U.S. GAAP?
  3. Identify Bogart’s reportable segments. Aggregate segments where possible. Explain your logic for determining the reportable segments.