Back Country Life, Inc., does business in two product segments, Camping and Fishing.
The following annual revenue information was determined from the accounting system’s invoice information:
20Y3 20Y2
Camping $280,000 $240,000
Fishing140,000 160,000
Total revenues $420,000 $400,000
Prepare horizontal and vertical analyses of the segments. Round to one decimal place.
Answers:
Horizontal analysis: 20Y3 20Y2 Amount Percent Camping $280,000 $240,000 $ 40,000 16.7% Fishing 140,000 160,000 (20,000) –12.5% Total revenues $420,000 $400,000 $ 20,000 5.0% Vertical analysis: Amount Percent Amount Percent Camping $280,000 66.7% $240,000 60.0% Fishing 140,000 33.3% 160,000 40.0% Total revenues $420,000 100.0% $400,000 100.0%