Question

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
Retail $249,570
Wholesale $366,685
Total Revenue $616,255
20Y4
Retail $265,500
Wholesale $324,500
Total Revenue $590,000
Prepare a horizontal analysis of the segments. Round percentages to one decimal place. Enter negative values as negative numbers

Answer 1

McHale Company

Horizontal Analysis of the segments

For the years 20Y4 and 20Y5

20Y5 20Y4 Difference amount Difference Percent

Retail $249,570 $265,500 $15,930 6.0%

Wholesale $366,685 $324,500 $42,185 13.0%

Total revenue $616,255 $590,000 $58,115 3.85%

Difference Percent Working

Retail= $15,930 / $265,500 * 100 = 6%

Wholesales = $42,185 / $324,500 * 100 = 13%

Total revenue = $58,115 / $590,000 * 100 = 3.85%