following annual revenue information was determined from the accounting system’s
invoice information:
2014 2013
Retail $110,000 $ 92,000
Wholesale 140,000 164,000
Total revenue $250,000 $256,000
Prepare a horizontal and vertical analysis of the segments. Round to one decimal place.
Answer:
Horizontal analysis:
2014 2013
Increase/(Decrease)
Amount Percent
Retail $110,000 $ 92,000 $ 18,000 19.6%
Wholesale 140,000 164,000 (24,000) –14.6%
Total revenue $250,000 $256,000 $ (6,000) –2.3%
Vertical analysis:
2014 2013
Amount Percent Amount Percent
Retail $110,000 44.0% $ 92,000 35.9%
Wholesale 140,000 56.0% 164,000 64.1%
Total revenue $250,000 100.0% $256,000 100.0%