Segment Information Broadline Company has 4 major product lines. In the United States, it produces refrigeration equipment and disk drives for computers. It also produces stereo equipment in Korea and electric appliance motors in Mexico. The electric motors used in its refrigeration equipment are purchased from the production facilities in Mexico.

a. Why would segment information for each of the 4 divisions be useful for decision makers in addition to the income statement and balance sheet of Broadline Company?

b. What information about the segments would you want if you were considering investing in the stock of Broadline?

c. Are there any special problems that might be encountered in evaluating the refrigeration division and the electric motor division?

d. While the sum of the segment earnings of the 4 operating divisions totaled $4,000,000, net income for the company as a whole was only $3,200,000. Explain why the totals are not the same.