McHale Company does business in two customer segments, Retail and Wholesale. The following annual revenue information was determined from the accounting system's invoice information:

20Y5

Retail $249,570

Wholesale $366,685

Total Revenue $616,255

20Y4

Retail $265,500

Wholesale $324,500

Total Revenue $590,000

Prepare a horizontal analysis of the segments. Round percentages to one decimal place. Enter negative values as negative numbers

Question

Business

Karley Bolton

16 March, 04:56

McHale Company does business in two customer segments, Retail and Wholesale. The following annual revenue information was determined from the accounting system's invoice information:

20Y5

Retail $249,570

Wholesale $366,685

Total Revenue $616,255

20Y4

Retail $265,500

Wholesale $324,500

Total Revenue $590,000

Prepare a horizontal analysis of the segments. Round percentages to one decimal place. Enter negative values as negative numbers

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Campbell Davidson · Answer 1

McHale Company

Horizontal Analysis of the segments

For the years 20Y4 and 20Y5

20Y5 20Y4 Difference amount Difference Percent

Retail $249,570 $265,500 $15,930 6.0%

Wholesale $366,685 $324,500 $42,185 13.0%

Total revenue $616,255 $590,000 $58,115 3.85%

Difference Percent Working

Retail = $15,930 / $265,500 * 100 = 6%

Wholesales = $42,185 / $324,500 * 100 = 13%

Total revenue = $58,115 / $590,000 * 100 = 3.85%