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
Wholesale150,000 164,000
Total revenues $276,000 $284,000
Prepare horizontal and vertical analyses of the segments. Round to one decimal place.
Answers:
Horizontal analysis: 20Y5 20Y4 Amount Percent Retail $126,000 $120,000 $ 6,000 5.0% Wholesale 150,000 164,000 (14,000) –8.5% Total revenues $276,000 $284,000 $ (8,000) –2.8% Vertical analysis: Amount Percent Amount Percent Retail $126,000 45.7% $120,000 42.3% Wholesale 150,000 54.3% 164,000 57.7% Total revenues $276,000 100.0% $284,000 100.0%