Bundle: Accounting, 27th + Cengagenowv2, 2 Terms Printed Access Card
27th Edition
ISBN: 9781337587419
Author: Carl Warren, James M. Reeve, Jonathan Duchac
Publisher: Cengage Learning
expand_more
expand_more
format_list_bulleted
Videos
Textbook Question
Chapter 5, Problem 5.27EX
Segment revenue horizontal and vertical analyses
The comparative segment revenues for Yum! Brands, a global quick-serve restaurant company, are as follows:
| Recent Year (in millions) | Prior Year (in millions) | |
| China | $ 6,909 | $ 6,934 |
| KFC | 2,948 | 3,193 |
| Pizza Hut | 1,145 | 1,148 |
| Taco Bell | 1,988 | 1,863 |
| India | 115 | 141 |
| Total | $13,105 | $13,279 |
- a. Provide a horizontal analysis of the segment revenues using the prior year as the base year. Round whole percents to one decimal place.
- b. Provide a vertical analysis of the segment revenues for both years. Round whole percents to one decimal place.
- c. What conclusions can be drawn from your analyses?
Expert Solution & Answer
Trending nowThis is a popular solution!
Students have asked these similar questions
The comparative segment revenues for Yum! Brands, a global quick-serve restaurant
company, are as follows:
Recent Year
Prior Year
(in millions)
(in millions)
$ 6,909
$ 6,934
China
KFC
2,948
3,193
Pizza Hut
1,145
1,148
Taco Bell
1,863
1,988
India
115
141
Total
$13,105
$13,279
a. Provide a horizontal analysis of the segment revenues using the prior year as the base
year. Round whole percents to one decimal place.
b. Provide a vertical analysis of the segment revenues for both years. Round whole percents
to one decimal place.
c. What conclusions can be drawn from your analyses?
Payton Company has the following segment revenues for the two most recent fiscal years.
Segment
Current Year (in millions)
Prior Year (in millions)
China
$770
$650
Canada
326
240
Other countries
212
168
Total revenues
$1,308
$1,058
Prepare a vertical analysis of the segment data. Calculate the percentage to four decimal places, then round your answer to one decimal
place.
Payton Company
Vertical Analysis
Current Year
Prior Year
Current Year
Percent
Prior Year
Segment
Amount
Amount
Percent
(in millions)
(in millions)
China
$770
$650
%
Canada
326
240
Other countries
212
168
Total revenues
$1,308
$1,058
Previous
Next
Segment Revenue Vertical Analysis
Newton Corporation is one of the world's largest entertainment companies that includes Gravity films, Apple Broadcasting, Gravity
News, the GR, and various satellite properties. The company provided revenue disclosures by its major product segments in the notes
to its financial statements as follows:
a. Using the revenue disclosures by major product segment listed below, provide a vertical analysis of the product segment revenues.
Round all percents to one decimal place.
For a Recent Year
Major Product Segments
(in millions)
Percent (%)
Cable Network Programming
$23,925
Television
8,338
Filmed Entertainment
5,154
Direct Broadcast Satellite Television
4,483
Total revenues of major segments
$41,900
%
Chapter 5 Solutions
Bundle: Accounting, 27th + Cengagenowv2, 2 Terms Printed Access Card
Ch. 5 - Why would a company maintain separate accounts...Ch. 5 - What are the major advantages of the use of...Ch. 5 - Prob. 3DQCh. 5 - How many postings to Fees Earned for the month...Ch. 5 - During the current month, the following errors...Ch. 5 - Prob. 6DQCh. 5 - What is an electronic form, and how is it used in...Ch. 5 - When are transactions posted in a computerized...Ch. 5 - What happens to the special journal in a...Ch. 5 - Prob. 10DQ
Ch. 5 - Revenue journal The following revenue transactions...Ch. 5 - Revenue journal The following revenue transactions...Ch. 5 - Accounts receivable subsidiary ledger The debits...Ch. 5 - Accounts receivable subsidiary ledger The debits...Ch. 5 - Purchases journal The following purchase...Ch. 5 - Purchases journal The following purchase...Ch. 5 - Accounts payable subsidiary ledger The debits and...Ch. 5 - Accounts payable subsidiary ledger The debits and...Ch. 5 - Segment analysis McHale Company does business in...Ch. 5 - Segment analysis Back Country Life, Inc., does...Ch. 5 - Identify postings from revenue journal Using the...Ch. 5 - Accounts receivable ledger Based on the data...Ch. 5 - Identify journals Assuming the use of a two-column...Ch. 5 - Identify journals Assuming the use of a two-column...Ch. 5 - Identify transactions in accounts receivable...Ch. 5 - Prepare journal entries in a revenue journal...Ch. 5 - Posting a revenue journal The revenue journal for...Ch. 5 - Accounts receivable subsidiary ledger The revenue...Ch. 5 - Revenue and cash receipts journals Transactions...Ch. 5 - Revenue and cash receipts journals Lasting Summer...Ch. 5 - Prob. 5.11EXCh. 5 - Prob. 5.12EXCh. 5 - Identify transactions in accounts payable...Ch. 5 - Prepare journal entries in a purchases journal...Ch. 5 - Posting a purchases journal The purchases journal...Ch. 5 - Accounts payable subsidiary ledger The cash...Ch. 5 - Purchases and cash payments journals Transactions...Ch. 5 - Purchases and cash payments journals Happy Tails...Ch. 5 - Error in accounts payable subsidiary ledger After...Ch. 5 - Prob. 5.20EXCh. 5 - Cash receipts journal The following cash receipts...Ch. 5 - Computerized accounting systems Most computerized...Ch. 5 - Prob. 5.23EXCh. 5 - Prob. 5.24EXCh. 5 - Segment revenue horizontal analysis Starbucks...Ch. 5 - Prob. 5.26EXCh. 5 - Segment revenue horizontal and vertical analyses...Ch. 5 - Revenue journal; accounts receivable subsidiary...Ch. 5 - Revenue and cash receipts journals; accounts...Ch. 5 - Purchases, accounts payable subsidiary account,...Ch. 5 - Purchases and cash payments journals; accounts...Ch. 5 - All journals and general ledger; trial balance The...Ch. 5 - Revenue journal; accounts receivable subsidiary...Ch. 5 - Revenue and cash receipts journals; accounts...Ch. 5 - Purchases, accounts payable account, and accounts...Ch. 5 - Purchases and cash payments journals; accounts...Ch. 5 - All journals and general ledger; trial balance The...Ch. 5 - Ethics in Action Netbooks Inc. provides accounting...Ch. 5 - Communication Internet-based accounting software...Ch. 5 - Manual vs. computerized accounting systems The...Ch. 5 - Accounts receivable and accounts payable A...Ch. 5 - Design of accounting systems For the past few...
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Payton Company has the following segment revenues for the two most recent fiscal years. Segment China Canada Other countries Total revenues Segment Prepare a vertical analysis of the segment data. Calculate the percentage to four decimal places, then round your answer to one decimal place. China Canada Other countries Current Year (in millions) $745 339 211 $1,295 Total revenues Payton Company Vertical Analysis Current Year Amount (in millions) $745 339 211 $1,295 Current Year Percent % Prior Year (in millions) $660 244 166 $1,070 % Prior Year Amount (in millions) $660 244 166 $1,070 Prior Year Percent % %arrow_forwardSegment Analysis Verity 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 20Y4 Retail $145,400 $138,500 Wholesale 173,100 189,300 Total revenue $318,500 $327,800 Prepare a horizontal analysis of the segments. Round percentages to one decimal place. Enter negative values as negative numbers. Verity Company Horizontal Analysis For the Years 20Y4 and 20Y5 20Y5 20Y4 Difference - Amount Difference - Percent Retail $145,400 $138,500 $fill in the blank fill in the blank % Wholesale 173,100 189,300 fill in the blank fill in the blank % Total revenue $318,500 $327,800 $fill in the blank fill in the blank % Prepare a vertical analysis of the segments. If required, round percentages to one decimal place. Verity Company Vertical Analysis For the Years 20Y4 and 20Y5 20Y5 Amount 20Y5 Percent 20Y4…arrow_forwardA condensed income statement for Northeast Airlines and a partially completed vertical analysis are presented below. ts Required: 1. Complete the vertical analysis by computing each missing line item as a percentage of sales revenues. (Round your answers to the nearest whole percent.) еВook Print NORTHEAST AIRLINES Income Statement (summarized) For the Year Ended December 31 eferences (in millions of U.S. dollars) 2016 2015 Sales Revenues $ 20,925 100 $ 20,320 100 % Salaries and Wages Expense 6,823 33 6,408 Fuel, Oil, Repairs, and Maintenance 4,717 4,646 Other Operating Expenses 5,200 4,725 23 Other Expenses (Revenues) 238 1 652 Income before Income Tax Expense 3,947 19 3,889 19 Income Tax Expense Net Income 1,370 7 1,361 7 $ 2,577 % $ 2,528 % 中arrow_forward
- A company's sales in the last year in its three different markets were as follows$Market 1 100,000Market 2 149,000Market 3 51,000Total 300,000In a pie chart representing the proportion of sales made by each region what would be the angle of thesection representing Market 3?A 17 degreesB 50 degreesC 61 degreesD 120 degreesarrow_forwardSegment analysis 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: prepare horizontal and vertical analyses of the segment. Round to one decimal place.arrow_forwardStarbucks Corporation reported the following geographical segment revenues for a recent and a prior fiscal year: Recent Year Prior Year (in millions, rounded) (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 $19,163 $16448 Total *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 whole percents to one decimal place. b. Prepare a vertical analysis of the segment data. Round whole percents to one decimal place. c. What conclusions can be drawn from your analyses?arrow_forward
- A retailer reports the following for its geographic divisions for the year. The profit margin for its China division is (round the answer to 2 decimal places, i.e. 17.52% would be .18): Americas Europe China Income $ 738,500 $275,250 $ 228,000 Sales 2,110,000 885,000 704,000arrow_forwardquestion is in imagearrow_forwardStarship 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 $10,479 $8,073 EMEA* 1,217 1,295 China/Asia Pacific 2,396 1,130 Channel Development** 1,731 1,546 Other 2,236 1,695 Total $18,059 $13,739 *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. Starship Corporation Horizontal Analysis Recent Year (in millions) Prior Year (in millions) Increase (Decrease)Amount Increase (Decrease)Percent Americas $10,479 $8,073 $fill in the blank 15396ff9101df9f_1 fill in the blank 15396ff9101df9f_2% EMEA 1,217 1,295 fill in the blank 15396ff9101df9f_3 fill…arrow_forward
- Analyze Yum! Brands by segment Yum! Brands, Inc. (YUM) is a worldwide operator and franchisor of fast-food restaurants, under the familiar brands of KFC, Pizza Hut, and Taco Bell. Segment revenues, operating income, and depreciation and amortization expense for Yum!'s operating segments are provided for a recent year as follows (in millions): Depreciation and Sales Operating Income Segment Amortization Expense $3,232 $874 $173 KFC Pizza Hut 1,111 370 36 Taco Bell 2,025 593 91 a. Prepare a vertical analysis of the sales as a percent of total sales for the three segments. Round percentages to the nearest whole percent. Segment Percentage of Total Revenue КFC Pizza Hut Taco Bell $ Total Which segment has the greatest percentage of total sales?arrow_forwardvertical analysisarrow_forwardRevenue and expense data for Innovation Quarter Inc. for two recent years are as follows: Current Year Previous Year Sales $493,000 $419,000 Cost of goods sold 281,010 213,690 83,810 Selling expenses 83,800 Administrative expenses 93,670 71,230 Income tax expense 14,790 20,950 a. Prepare an income statement in comparative form, stating each item for both years as a percent of sales. If required, round percentages to one decimal place. Enter all amour nounts as positive numbers. Innovation Quarter Inc Comparative Income Statement For the Years Ended December 31 Current year Amount Current year Percent Previous year Amount Previous year Percent Sales $493,000 $419,000 281,010 213,690 Cost of goods sold Selling expenses 83,810 83,800 96 96 93,670 71,230 Administrative expensesarrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Financial AccountingAccountingISBN:9781337272124Author:Carl Warren, James M. Reeve, Jonathan DuchacPublisher:Cengage Learning
Financial AccountingAccountingISBN:9781305088436Author:Carl Warren, Jim Reeve, Jonathan DuchacPublisher:Cengage Learning
Managerial AccountingAccountingISBN:9781337912020Author:Carl Warren, Ph.d. Cma William B. TaylerPublisher:South-Western College Pub
Financial And Managerial AccountingAccountingISBN:9781337902663Author:WARREN, Carl S.Publisher:Cengage Learning,
Managerial Accounting: The Cornerstone of Busines...AccountingISBN:9781337115773Author:Maryanne M. Mowen, Don R. Hansen, Dan L. HeitgerPublisher:Cengage Learning
Cornerstones of Financial AccountingAccountingISBN:9781337690881Author:Jay Rich, Jeff JonesPublisher:Cengage Learning
Financial Accounting
Accounting
ISBN:9781337272124
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Cengage Learning
Financial Accounting
Accounting
ISBN:9781305088436
Author:Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:Cengage Learning
Managerial Accounting
Accounting
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:South-Western College Pub
Financial And Managerial Accounting
Accounting
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:Cengage Learning,
Managerial Accounting: The Cornerstone of Busines...
Accounting
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Cengage Learning
Cornerstones of Financial Accounting
Accounting
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Cengage Learning
Financial ratio analysis; Author: The Finance Storyteller;https://www.youtube.com/watch?v=MTq7HuvoGck;License: Standard Youtube License