1. Segment Reporting-Theory Presented below is an excerpt from the financial statements of H. J. Heinz Company. Segment and Geographic Data the company is engaged principally in one line of business-processed food products-which represents over 90% of consolidated sales. Information about the business of the company by geographic area is presented in the table below. There were no material amounts of sales or transfers between geographic areas or between affiliates, and no material amounts of United States export sales.
(a) Why does H. J. Heinz not prepare segment information on its products or services?
(b) What are export sales, and when should they be disclosed?
(c) Why are sales by geographical area important to disclose?
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