Question

Segment Revenue Horizontal Analysis Starbucks Corporation reported the following geographical segment revenues for a recent and a prior fiscal year: Recent Year (in millions, rounded) Prior Year (in millions, rounded) Americas $13,293 $11,980 EMEA* 1,217 1,295 China/Asia Pacific 2,396 1,130 Channel Development** 1,731 1,546 Other 526 497 Total $19,163 $16,448 *Europe, Middle East, and Africa **Sells packaged coffee and teas globally a. Prepare a horizontal analysis of the segment data using the prior year as the base year. Round all percents to one decimal place. Enter all amounts in millions. If required, use minus sign to indicate the decreasing values.

Answer 1

Answer and Explanation:

The Preparation of horizontal analysis of the segment data is shown below:-

Starbucks Corporation

Horizontal analysis segment revenue statements

For years ended prior and recent

Recent Prior year/ Increase or Percentage

year Base year Reduced difference

a b c = a - b d = (c÷b) × 100

Revenue

Americas $13,293 $11,980 $1,313 11.00

Europe, Middle East,

and Africa $1,217 $1,295 -$78 -6.00

China/Asia

pacific $2,396 $1,130 $1,266 112.00

Channel

development $1,731 $1,546 $185 12.00

Other $526 $497 $29 5.80

Total $19,163 $16,448 $2,715 16.50

It can be made relevant in horizontal analysis if specific time figures are available for analysis.

Therefore to reach the Percentage difference we simply first made the difference of recent year and prior year/base year after that we divide the increase or reduced by prior year/base year and convert into percentage by multiply of 100.