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podryga [215]
3 years ago
11

McHale Company does business in two customer segments, Retail and Wholesale. The following annual revenue information was determ

ined 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.
Business
1 answer:
Artyom0805 [142]3 years ago
7 0

Answer:

                               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%

<em>Workings</em>

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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