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13 May, 15:31

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 20Y4

Retail $126,000 $120,000

Wholesale 150,000 164,000

Total revenue $276,000 $284,000

Prepare a horizontal analysis of the segments. Round percentages to one decimal place.

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  1. 13 May, 18:40
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    Horizontal Analysis

    For the years 20Y4 and 20Y5

    20Y5 20Y4 Difference amount Difference Percent

    Retail 126000 120000 6000 5.0%

    Wholesale 150000 164000 - 14000 - 8.5%

    Total revenue 276000 284000 - 8000 - 2.8%

    Workings

    Retail = 126000 - 120000 = 6000

    6000/120000 * 100 = 5.0%

    Wholesale = 150000 - 164000 = - 14000

    -14000/164000 * 100 = 8.53%

    Total revenue = 276000 - 284000 = - 8000

    -8000/284000 * 100 = 2.82%
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