Bismac Industries is a diversified company whose operations are conducted in five product lines, L, M, N, O, and P. Segmented financial information is to be included with the December 31, 2024 annual report. Financial information pertaining to each segment for 2024 is as follows:

Additional Information:
1. In addition to the identifiable assets listed, the general corporate office has assets of $90,000 on December 31, 2024, and incurred unallocated amounts related to corporate headquarters of interest expense $1,000, depreciation expense $2,000.
2. Included in the sales of segment P are $15,000 of sales made to segment N during the year. None of these goods remains in the ending inventory of segment N on December 31, 2024. There were no capital expenditures during the year.
3. No single customer represented more than 10% of sales.

Required:
A. Determine which of the five segments must be treated as reportable segments and indicate the basis for your decision. Assume segments are defined based on product line.
B. Prepare a financial report by segments that is reconciled to consolidated data.

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Sales Cost of sales Interest expense Depreciation expense Selling expense Total cost and expense Operating profit (loss) Identifiable assets L $40,000 15,000 4,000 5,000 8,000 32,000 $ 8,000 $30,000 M $ 85,000 45,000 11,000 8,000 32,000 96,000 $(11,000) $ 48,000 N $600,000 275,000 50,000 54,000 140,000 519,000 $ 81,000 $320,000 0 P $50,000 $48,000 22,000 29,000 4,000 6,000 9,000 41,000 $ 9,000 $45,000 1,000 5,000 10,000 45,000 $ 3,000 $95,000